Nymex Natural Gas Tumbles as LNG Demand Recovery Still Unclear

• LNG jitters sending natural gas futures tumbling
• Power restoration efforts in Louisiana could take weeks; unclear if LNG terminals have power
• Cash posts moderate gains as heat returns to the East Coast

After another day of low liquefied natural gas (LNG) demand, natural gas futures buckled in a big way as the continuation of weak exports and cool September outlook pressured the market. The October Nymex gas futures contract dropped 10.3 cents Tuesday to settle at $2.527. November fell a much more modest 1.9 cents to $2.901.

Spot gas prices were mostly higher, however, as heat was expected to rebuild on the East Coast beginning Wednesday. NGI’s Spot Gas National Avg. ticked up 2.0 cents to $2.015.

After inspections indicated “no significant damage” to either the Sabine...