In a huge blow to natural gas bulls licking their chops at the sight of $10 gas, Freeport LNG’s announcement that it would not begin initial production until November, rather than the October startup previously targeted, crushed futures. After surging to a $10.028/MMBtu intraday high, the September Nymex gas futures contract plunged 48.7 cents day/day to settle at $9.193. October futures tumbled 49.2 cents to $9.155.

Freeport LNG Deliveries

At A Glance:

  • Prompt month falls for fifth session
  • Production lower on maintenance
  • Heating demand drops into weekend

Spot gas prices continued to rise, however, with robust power burns driving demand. NGI’s Spot Gas National Avg. tacked on 18.0 cents to $9.245.

What started out as the most promising run at $10 gas yet, Tuesday’s session took a dramatic turn...