Physical natural gas prices retreated across the Gulf Coast and Southeast on Tuesday for Wednesday delivery, giving back roughly two-thirds of Monday's surge past $7 as Tropical Storm Edouard made landfall near the Texas-Louisiana border.

At a Glance

• Southeast hubs held about $1 above Friday's levels
• Henry Hub barely moved as Louisiana locations plunged
• Houston Ship Channel posted gains near the point of landfall

The pullback followed a sharp Monday rally, when air conditioning demand under an entrenched heat dome combined with recovering LNG exports to bid up hubs from Louisiana to Florida, pushing Southeast cash prices above $7.

The Gulf Coast's dense cluster of LNG export terminals along the Texas-Louisiana corridor makes the region especially sensitive to tropical weather during hurricane season, since storms can disrupt feedgas deliveries to terminals as well as offshore production and pipeline flows. In Edouard's case, LNG terminals largely shrugged off the storm, with feedgas nominations holding steady — a key reason cash prices were able to retrace much of the storm-related premium rather than sustain it.

Even so, Southeast hubs holding about $1 above Friday's levels reflected the underlying demand backdrop: the lingering heat dome continued to drive robust air conditioning load, while expanding US manufacturing has provided additional support for industrial gas consumption heading into fall.

For additional context, NGI's recent coverage includes:

• Natural Gas Futures Pare Early Losses as LNG Terminals Shrug Off Edouard — Natural gas futures clawed back most of their early losses Tuesday as the season's first Gulf Coast tropical storm bore down on the Texas-Louisiana LNG corridor without denting feedgas nominations.
• US Manufacturing Growth Supports Industrial Natural Gas Demand Heading Into Fall — US manufacturing continued to expand in August, with factory production remaining strong and Texas activity accelerating, providing a supportive backdrop for industrial natural gas demand heading into fall.
• US LNG Exports Surge 23% — So Why Is Henry Hub Still Below $3? — Despite an enormous increase in US LNG output this year, benchmark Henry Hub prices have barely budged.
• Technical Resistance Figures Prominently in October Natural Gas Futures Trading — A technical ceiling close to the $3.00/MMBtu level kept front-month natural gas futures in check Tuesday as the calendar flipped to September and meteorological autumn got underway.
• Natural Gas Prices Stumble in Early Futures Market Action — Prompt-month natural gas futures struggled to sustain momentum Tuesday morning as weather forecasts and LNG demand leaned bullish, while stout supply held firm as a counterweight.
• Southeast Natural Gas Cash Vaults Past $7 as Western Spike Deflates — Physical natural gas prices surged across the Gulf Coast and Southeast Monday as air conditioning demand combined with recovering LNG exports to bid up hubs from Louisiana to Florida.

Source: Natural Gas Intelligence