U.S. natural gas futures extended their rapid retreat to briefly dip below $2 per million British thermal units (mmBtu) level for the first time since September 2020 in pre-market trading on Wednesday.

Prices shed almost 9% to a near 29-month low on Tuesday on forecasts for milder weather and lower than expected heating demand next week.

Front-month gas futures NGc1 for March delivery on the New York Mercantile Exchange fell 8.4 cents, or 4.1% to $1.989 per million British thermal units (mmBtu) at 2:05 a.m. EST (0705 GMT).

Prices have shed about 55% this year on warmer forecasts, and have also been impacted by a delay in the restart of Freeport LNG’s liquefied natural gas (LNG) export plant in Texas, which was shut by a fire last year, leaving more supply for the U.S. domestic market.

The second largest U.S. LNG exporter has received federal approval to restart partial operations at the plant, with full capacity seen “several weeks” away.
Source: Reuters (Reporting by Arpan Varghese in Bengaluru; editing by Himani Sarkar and Jason Neely)