US Natural Gas Futures Rise on Firming LNG Flows and Below-Average Inventory Build

US natural gas futures rose, posting weekly gains, due to increasing LNG feedgas flows and a smaller-than-expected inventory build, which reduced the storage surplus to its lowest level since mid-June. The firming demand and lower inventory levels indicate a tightening market.

US natural gas futures posted weekly gains, reaching their highest level since mid-June, driven by increasing LNG feedgas flows and a smaller-than-expected inventory build. This development has significantly reduced the storage surplus to its lowest level since mid-June, indicating a tightening market [1].

The rise in natural gas futures can be attributed to the growing demand for LNG feedgas, which has been bolstered by commitments from major energy companies. Harvest Midstream has agreed to buy $1 billion worth of natural gas gathering and processing assets from MPLX, which will dedicate about 12,000 barrels per day of natural gas liquids to MPLX for seven years from 2028 [2]. This transaction underscores the increasing demand for natural gas in the U.S.

Additionally, EQT Corp. has committed to buying two million metric tons per annum (MMtpa) for 20 years from Sempra’s planned Port Arthur LNG Phase II project in Jefferson County, Texas. This agreement is part of a broader trend where major energy companies are securing long-term LNG supply contracts to meet their energy needs [3].

The tightening market conditions are further supported by the recent permit granted by the Department of Energy (DOE) to Port Arthur LNG Phase II for exporting to countries without a free trade agreement (FTA) with the U.S. This permit marks the resumption of federal permitting for LNG export to non-FTA nations following a pause by the previous administration [3].

These developments suggest that the U.S. natural gas market is experiencing a shift towards increased demand and reduced supply, which is reflected in the rising natural gas futures. Investors and financial professionals should closely monitor these trends as they may impact the overall energy landscape and related investment opportunities.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UJ0TX:0-mplx-gains-on-selling-natural-gas-assets-for-1-billion/
[2] https://www.rigzone.com/news/eqt_offtakes_2_mmtpa_for_20_years_from_port_arthur_lng_phase_2-30-aug-2025-181628-article/