By Scott DiSavino
       June 13 (Reuters) - U.S. natural gas futures fell about 3% on Thursday on lowered demand forecasts for the next two weeks,
expectations supplies will soon rise once the Mountain Valley gas pipeline enters service, and news that recent increases in
prices and demand prompted EQT, the nation's biggest gas producer, to start boosting output.
    Traders said prices were also pressured by upward revisions to past weeks' storage builds in the latest report even though
last week's storage build was seasonally small for a fifth straight week. Producers cut output after futures prices dropped to
3-1/2-year lows in February and March.
    The U.S. Energy Information Administration (EIA) said utilities added 74 billion cubic feet (bcf) of gas into storage during
the week ended June 7. But working gas stocks were revised higher for the five-week period from May 3-31 by increasing inventories
by 6 bcf to 9 bcf for each week during the period.
        For the week ended June 7, the stock build was in line with the 74-bcf addition analysts forecast in a Reuters poll and
compares with an increase of 90 bcf in the same week last year and a five-year (2019-2023) average rise of 89 bcf for this time of
year.
    This week's build left stockpiles about 24% above normal for this time of year.
    Front-month gas futures for July delivery on the New York Mercantile Exchange fell 10.3 cents, or 3.4%, to $2.942 per
million British thermal units (mmBtu) at 10:42 a.m. EDT (1442 GMT).
        Before EIA released the storage report, front-month prices were down about 2.0%.
  
        The futures price decline occurred despite forecasts for hotter weather through at least the end of June that should boost
the amount of gas power generators need to burn to keep air conditioners humming.
    
    SUPPLY AND DEMAND
    Financial firm LSEG said gas output in the Lower 48 U.S. states fell to an average of 97.8 billion cubic feet per day (bcfd)
so far in June, down from 98.1 bcfd in May. That compares with a monthly record of 105.5 bcfd in December 2023.
    On a daily basis, output was on track to rise by around 0.4 bcfd over the past two days to a preliminary 96.9 bcfd on
Thursday, up from a 20-week low of 96.5 bcfd on Tuesday.
    Before recent output declines in June, analysts said increases in May were a sign producers were slowly boosting output due to
a 47% jump in futures prices in April and May. Output hit a six-week high of 99.5 bcfd on May 24. EQT said this week that
it started boosting output.
    Overall, U.S. gas production was still down around 9% so far in 2024 after several energy firms, including EQT and
Chesapeake Energy, delayed well completions and cut drilling activities when prices fell in February and March. Chesapeake
is on track to become the biggest producer after its merger with Southwestern Energy.
    Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least June 28.
    LSEG forecast gas demand in the Lower 48, including exports, would jump from 94.9 bcfd this week to 98.5 bcfd next week. Those
forecasts were lower than LSEG's outlook on Wednesday.
    Gas flows to the seven big U.S. LNG export plants, meanwhile, rose to 13.1 bcfd so far in June, from 12.9 bcfd in May.
            
                                                                   Week ended   Week ended    Year ago     Five-year         
                                                                     June 7       May 31       June 7       average         
                                                                     Actual       Actual                    June 7     
 U.S. weekly natgas storage change (bcf):                             +74           +96          +90          +89           
 U.S. total natgas in storage (bcf):                                 2,974         2,900        2,610        2,401          
 U.S. total storage versus 5-year average                            23.9%         25.4%                                     
                                                                                                                             
                                                                                                                             
 Global Gas Benchmark Futures ($ per mmBtu)                       Current Day    Prior Day   This Month   Prior Year    Five-Year
                                                                                              Last Year     Average      Average
                                                                                                             2023      (2018-2022)
 Henry Hub                                                            3.02         3.05         2.47         2.66         3.60
 Title Transfer Facility (TTF)                                       11.54         11.10        10.32        13.04        14.39
 Japan Korea Marker (JKM)                                            12.03         12.00        10.61        14.39        14.31
                                                                                                                             
                                                                                                                             
 LSEG Heating (HDD), Cooling (CDD) and Total (TDD) Degree Days                                                               
 Two-Week Total Forecast                                          Current Day    Prior Day   Prior Year     10-Year      30-Year
                                                                                                             Norm         Norm
 U.S. GFS HDDs                                                         7             8           14           12           11
 U.S. GFS CDDs                                                        218           213          138          160          163
 U.S. GFS TDDs                                                        225           221          152          172          174
                                                                                                                             
 LSEG U.S. Weekly GFS Supply and Demand Forecasts                                                                            
                                                                   Prior Week     Current     Next Week    This Week    Five-Year
                                                                                   Week                    Last Year   (2019-2023)
                                                                                                                       Average For
                                                                                                                          Month
 U.S. Supply (bcfd)                                                                                                               
 U.S. Lower 48 Dry Production                                             98.3         97.4         97.4        102.7         94.7
 U.S. Imports from Canada                                                  7.3          7.4          7.1          N/A          7.8
 U.S. LNG Imports                                                          0.0          0.0          0.0          0.0          0.0
 Total U.S. Supply                                                       105.6        104.8        104.5          N/A        112.5
                                                                                                                                  
 U.S. Demand (bcfd)                                                                                                               
 U.S. Exports to Canada                                                    1.8          1.6          1.6          N/A          2.3
 U.S. Exports to Mexico                                                    6.7          6.4          6.9          N/A          6.0
 U.S. LNG Exports                                                         13.2         12.9         13.0         11.3          8.5
 U.S. Commercial                                                           4.5          4.5          4.5          4.5          4.8
 U.S. Residential                                                          3.8          3.8          3.8          3.8          4.3
 U.S. Power Plant                                                         35.4         37.2         40.1         37.0         36.3
 U.S. Industrial                                                          21.6         21.6         21.6         21.2         21.3
 U.S. Plant Fuel                                                           4.9          4.8          4.8          4.9          4.9
 U.S. Pipe Distribution                                                    1.9          2.0          2.0          1.9          1.9
 U.S. Vehicle Fuel                                                         0.1          0.1          0.1          0.1          0.1
 Total U.S. Consumption                                                   72.2         74.0         77.0         73.4         73.6
 Total U.S. Demand                                                        94.0         94.9         98.5          N/A         90.4
                                                                                                                                  
 N/A is Not Available                                                                                                  
                                                                                                                       
 U.S. Northwest River Forecast Center (NWRFC) at The Dalles Dam   Current Day   Prior Day       2023      2022         2021      
                                                                  % of Normal   % of Normal  % of Normal  % of Normal  % of Normal
                                                                    Forecast     Forecast      Actual       Actual       Actual
 Apr-Sep                                                               76           76           83           107          81
 Jan-Jul                                                               77           76           77           102          79
 Oct-Sep                                                               79           79           76           103          81
                                                                                                                        
                                                                                                                        
 U.S. weekly power generation percent by fuel - EIA                                                                               
                                                                   Week ended   Week ended   Week ended   Week ended   Week ended
                                                                     Jun 14        Jun 7       May 31       May 24       May 17
 Wind                                                                  9            11           11           13           10
 Solar                                                                 6             6            6            6            6
 Hydro                                                                 7             7            7            7            8
 Other                                                                 1             1            1            1            1
 Petroleum                                                             0             0            0            0            0
 Natural Gas                                                           41           41           40           38           40
 Coal                                                                  15           15           14           14           14
 Nuclear                                                               20           19           20           19           20
                                                                                                                             
 SNL U.S. Natural Gas Next-Day Prices ($ per mmBtu)                                                                          
 Hub                                                              Current Day    Prior Day                                   
 Henry Hub                                                   2.80         2.71                                       
 Transco Z6 New York                                        1.79         1.30                                       
 PG&E Citygate                                             2.03         2.16                                       
 Eastern Gas (old Dominion South)                         1.55         1.32                                       
 Chicago Citygate                                           2.22         1.83                                       
 Algonquin Citygate                                         1.79         1.47                                       
 SoCal Citygate                                           1.69         1.86                                       
 Waha Hub                                                 2.00         1.67                                       
 AECO                                                     0.47         0.62                                       
                                                                                                                                  
 SNL U.S. Power Next-Day Prices ($ per megawatt-hour)                                                                             
 Hub                                                              Current Day    Prior Day                                        
 New England                                             27.50        27.25                                       
 PJM West                                                38.00        28.25                                       
 Ercot North                                             46.00        41.00                                       
 Mid C                                                   36.00        28.25                                       
 Palo Verde                                              21.75        36.38                                       
 SP-15                                                   23.50        23.00                                       
 
 (Reporting by Scott DiSavino; Editing by Paul Simao and David Gregorio)