Tropical Storm Bertha Tests Gulf Coast LNG Operations as Gas Prices Hold Steady

Tropical Storm Bertha is approaching key Gulf Coast LNG export facilities, but feedgas flows remain largely intact as U.S. natural gas prices hold steady amid shifting demand forecasts.

(Reuters) — U.S. natural gas futures held steady on July 21 on rising output, a decline in liquefied natural gas (LNG) export flows, and as a tropical storm in the Gulf of Mexico helps to lower demand forecasts.

Front-month gas futures for August delivery on the New York Mercantile Exchange rose 0.5 cent, or 0.2%, to settle at $2.865 per million British thermal units (MMBtu).

In the Gulf of Mexico, the U.S. National Hurricane Center said Tropical Storm Bertha would move west across the Gulf Coast and hit Louisiana on Wednesday near the mouth of the Mississippi River close to where Venture Global LNG's Plaquemines export plant is located.

After crossing southern Louisiana, Bertha is expected to weaken into a tropical depression as it keeps moving west toward Texas, crossing almost all of the other Gulf Coast LNG export plants except Cheniere Energy's Corpus Christi, which is farther south along the Texas coast.

Energy analysts noted the storm would likely reduce gas demand by bringing cooler, rainy weather and knocking out power to homes and businesses and possibly causing some LNG export plants to reduce output.

Plaquemines LNG, however, was on track to take in more gas on Tuesday with feedgas rising to 3.8 billion cubic feet per day on July 21, up from 3.6 billion cubic feet per day on July 20. There were no major changes in flows at any of the other Gulf Coast LNG export plants, according to data from financial firm LSEG.

The analysts noted that tropical storms could disrupt gas flows on pipelines but usually do not reduce output by much, since most U.S. gas production is located far inland in the Marcellus/Utica shale in Pennsylvania, Ohio, and West Virginia and the Permian basin in West Texas and New Mexico.

Only about 2% of total U.S. gas output comes from the federal offshore Gulf of Mexico.

Supply and Demand

LSEG said average gas output in the U.S. Lower 48 states rose to 110.5 billion cubic feet per day so far in July, up from 110.0 billion cubic feet per day in June, but remained below the monthly record high of 110.6 billion cubic feet per day in December 2025.

Analysts said mostly mild weather during the spring allowed energy firms to stockpile more gas than usual. As they wait for a federal report on Thursday, analysts projected the amount of gas in storage likely rose to 6.5% above normal during the week ended July 17, up from 6.4% above normal during the previous week. 

Meteorologists forecast the weather would remain mostly warmer than normal through August 5, forcing power generators to continue burning lots of gas to keep air conditioners humming. About 40% of U.S. power generation comes from gas-fired plants.

LSEG projected average gas demand in the Lower 48 states, including exports, would rise from 111.0 billion cubic feet per day this week to 111.6 billion cubic feet per day next week. The forecast for this week was lower than LSEG's outlook on Friday, while its forecast for next week was higher.

Average gas flows to the nine big U.S. LNG export plants eased to 17.3 billion cubic feet per day so far in July due in part to maintenance at Freeport LNG's export plant in Texas, down from 17.4 billion cubic feet per day in June and the monthly record high of 18.8 billion cubic feet per day in April.