* Milder weather and holiday expected to reduce US gas

demand after heatwave

* Gas prices also pressured by 6% oil drop after Trump

comments on Iran talks

* LSEG reports US gas output, LNG exports down in May due

to plant maintenance

(Adds latest prices)

By Scott DiSavino

NEW YORK, May 20 (Reuters) - U.S. natural gas futures

fell about 4% on Wednesday with the approach of milder, more

spring-like weather and the long Memorial Day holiday weekend,

which together should depress gas demand after a heat wave

blasted the Mid-Atlantic region this week.

Analysts also cited a 6% drop in oil prices

after U.S. President Donald Trump said negotiations with Iran

were in the "final stages".

After rising for five days in a row, front-month gas futures

for June delivery on the New York Mercantile Exchange

fell 11.0 cents, or 3.5%, to settle at $3.004 per million

British thermal units (mmBtu). On Tuesday, the contract closed

at its highest since March 19.

Financial group LSEG said average gas output in the U.S.

Lower 48 states fell to 109.3 billion cubic feet per day (bcfd)

so far in May, down from 109.8 bcfd in April and a monthly

record high of 110.6 bcfd in December 2025.

Meteorologists forecast the weather will remain mostly

warmer than normal through June 4.

RECORD HEAT IN WASHINGTON, D.C.

Temperatures in Washington, D.C., were on track to hit 96

degrees Fahrenheit (35.6 degrees Celsius) on Wednesday after

hitting a record-breaking 97 F on Tuesday before dropping to 70

F on Thursday and 61 F on Friday and Saturday, according to

weather forecaster AccuWeather.

That compares with the prior all-time high of 96 F on May 19

in 1997 and 96 F on May 20 in 1996. The normal high in the

nation's capital around this time of year is 77 F.

To escape the heat, homes and businesses in the PJM power

grid, which includes Washington, cranked up their air

conditioners, boosting spot prices by 449% earlier this week to

$229 per megawatt-hour, the highest since January. PJM manages

the grid in all or part of 13 states from New Jersey to

Illinois.

LSEG projected average gas demand in the Lower 48 states,

including exports, would slide from 98.3 bcfd this week to 97.8

bcfd next week. Those forecasts were higher than LSEG's outlook

on Tuesday.

Average gas flows to the nine big U.S. LNG export plants

fell from a monthly record high of 18.8 bcfd in April to 17.0

bcfd so far in May due to spring maintenance reductions at

several plants, including ExxonMobil ( XOM )/QatarEnergy's

Golden Pass and Freeport LNG's plant in Texas.

Week Week Year Five-

ended ended ago year

May May 8 May avera

15 Actua 15 ge

Forec l (2021

ast -2025

) May

15

U.S. weekly natgas +85 +85 +119 +92

storage change

(bcf):

U.S. total natgas in 2,375 2,290 2,358 2,242

storage (bcf):

U.S. total storage +5.9% +6.5%

versus 5-year

average

Global Gas Benchmark Curre Prior This Prior Five-

Futures ($ per nt Day Month Year Year

mmBtu) Day Last Avera Avera

Year ge ge

2025 (2021

-2025

)

Henry Hub 3.11 3.11 3.46 3.62 3.79

Title Transfer 17.30 17.43 11.68 11.94 18.51

Facility (TTF)

Japan-Korea Marker 19.61 18.96 11.83 12.24 18.12

(JKM)

LSEG U.S. Global

Forecast System

(GFS) Heating,

Cooling and Total

Degree Days

Two-Week Total Curre Prior Prior 10-Ye 30-Ye

Forecast nt Day Year ar ar

Day Norm Norm

U.S. GFS Heating 27 31 41 44 45

Degree Days (HDD)

U.S. GFS Cooling 129 126 91 102 97

Degree Days (CDD)

U.S. GFS Total 156 157 132 146 142

Degree Days (TDD)

LSEG U.S. Weekly GFS

Supply and Demand

Forecasts

Prior Curre Next This Five-

Week nt Week Week Year

Week Last (2021

Year -2025

)

Avera

ge

for

Month

U.S. Supply (bcfd)

U.S. Lower 48 Dry 109.1 109.5 110.0 106.2 100.1

Production

U.S. Imports from 6.8 6.5 6.6 N/A 7.3

Canada

U.S. LNG Imports 0.0 0.0 0.0 0.0 0.0

Total U.S. Supply 115.9 115.9 116.6 N/A 107.4

U.S. Demand (bcfd)

U.S. Exports to 2.7 2.7 2.7 N/A 2.4

Canada

U.S. Exports to 7.4 7.4 7.2 N/A 6.5

Mexico

U.S. LNG Export 16.7 16.7 17.2 15.2 12.9

Feedgas

U.S. Commercial 5.7 5.2 4.8 5.7 5.9

U.S. Residential 6.1 5.0 4.4 5.9 6.3

U.S. Power Plant 30.7 32.1 32.6 32.5 30.6

U.S. Industrial 22.1 21.8 21.6 22.7 22.0

U.S. Plant Fuel 5.4 5.4 5.4 5.4 5.2

U.S. Pipe 1.9 1.9 1.9 1.9 2.8

Distribution

U.S. Vehicle Fuel 0.1 0.1 0.1 0.1 0.2

Total U.S. 72.1 71.5 70.8 74.2 73.0

Consumption

Total U.S. Demand 98.9 98.3 97.8 N/A 94.8

N/A = Not Available

U.S. Northwest River 2026 2026 2025 2024 2023

Forecast Center Curre Prio % of % of % of

(NWRFC) at The nt r Day Norma Norma Norma

Dalles Dam (fiscal Day % % of l l l

year ending of Norma Actua Actua Actua

September 30) Norma l l l l

l Forec

Forec ast

ast

Apr-Sep 88 88 76 74 83

Jan-Jul 92 92 78 76 77

Oct-Sep 97 97 80 77 76

U.S. weekly power

generation percent

by fuel - EIA

Week Week 2025 2024 2023

ended ended

May May

22 15

Wind 17 15 11 11 10

Solar 8 11 6 5 4

Hydro 6 7 6 6 6

Other 1 1 1 1 2

Petroleum 0 0 0 0 0

Natural Gas 35 35 40 42 41

Coal 14 13 18 16 17

Nuclear 19 19 18 19 19

SNL U.S. Natural Gas

Next-Day Prices ($

per mmBtu)

Hub Curre Prior This Prior Five-

nt Day Month Year Year

Day Last Avera Avera

Year ge ge

2025 (2021

-2025

)

Henry Hub 3.23 3.07 3.12 3.52 3.72

Transco Z6 New York 2.39 2.38 2.35 3.53 3.56

PG&E Citygate 1.60 1.52 2.89 3.42 5.47

Eastern Gas 2.29 2.17 2.25 2.79 2.96

(formerly Dominion

South)

Chicago Citygate 2.65 2.53 2.86 3.23 3.60

Algonquin Citygate 2.57 2.99 2.82 6.08 5.04

SoCal Citygate 2.40 2.20 2.98 3.60 5.71

Waha Hub -2.73 -3.21 1.34 1.15 2.88

AECO 1.14 1.11 1.32 1.13 2.13

Intercontinental

Exchange (ICE)

U.S. Power Next-Day

Prices ($ per

megawatt-hour)

Hub Curre Prior This Prior Five-

nt Day Month Year Year

Day Last Avera Avera

Year ge ge

2025 (2021

-2025

)

New England 79.09 89.99 40.31 77.61 61.79

PJM West 110.3 228.7 43.04 60.23 54.47

7 8

Mid-Columbia (Mid C) 20.22 7.31 39.90 44.81 68.96

Palo Verde 20.25 10.00 29.10 34.82 59.94

South Path-15 6.84 3.81 17.36 28.44 53.02

(SP-15)