Adds latest prices

By Scott DiSavino

April 17 (Reuters) -U.S. natural gas futures eased about 1% to a three-week low on Wednesday on mild weather forecasts, a big drop in feedgas to liquefied natural gas (LNG) export plants earlier this week and worries about the huge surplus of gas in U.S. storage.

Analysts forecast gas stockpiles were about 36% above normal levels for this time of year. EIA/GAS NGAS/POLL

Also weighing on gas prices in recent weeks has been extremely low spot power and gas prices that have traded below zero in several parts of the country, including Texas, California and Arizona.

That futures price decline came despite forecasts for higher demand this week than previously expected and a drop in output in recent weeks.

U.S. gas production fell by around 10% so far this year as several energy firms, including EQT EQT.N and Chesapeake Energy CHK.O, delayed well completions and cut back on other drilling activities after prices fell to 3-1/2-year lows in February and March.

EQT is currently the biggest U.S. gas producer and Chesapeake is on track to become the biggest producer after its merger with Southwestern Energy SWN.N.

Front-month gas futures NGc1 for May delivery on the New York Mercantile Exchange fell 2.0 cents, or 1.2%, to settle at $1.712 per million British thermal units.

In the spot market, next-day gas prices at the Waha hub NG-WAH-WTX-SNL in the Permian Shale in West Texas rose to negative $1.13 per mmBtu on April 16 from a near four-year low of negative $2.86 on April 15, according to data from SNL Energy on the LSEG terminal.

In California, meanwhile, gas prices at the PG&E Citygate NG-CG-PGE-SNL in the northern part of the state fell to $2.07 per mmBtu, their lowest since July 2020.

In other news, energy traders said part of the reason gas prices climbed on Tuesday was the rupture of a section of TC Energy's TRP.TO NGTL gas pipeline system in Alberta, which sparked a fire in a remote area. NGTL connects most of the gas production in Western Canada to domestic and export markets.

SUPPLY AND DEMAND

Financial firm LSEG said gas output in the Lower 48 U.S. states fell to an average of 98.4 billion cubic feet per day (bcfd) so far in April, down from 100.8 bcfd in March. That compares with a monthly record of 105.6 bcfd in December 2023.

On a daily basis, output was on track to drop about 3.0 bcfd over the past five days to a preliminary three-month low of 95.6 bcfd on Wednesday.

LSEG forecast gas demand in the Lower 48, including exports, would rise from 91.8 bcfd this week to 94.2 bcfd next week. The forecasts for this week were higher than LSEG's outlook on Tuesday.

Gas flows to the seven big U.S. liquefied natural gas (LNG) export plants slid to an average of 12.0 bcfd so far in April, down from 13.1 bcfd in March. That compares with a monthly record of 14.7 bcfd in December.

On a daily basis, LNG feedgas was on track to rise to a preliminary 10.3 bcfd on Wednesday from a three-month low of 9.5 bcfd on Tuesday when feedgas was reduced at several facilities, including Freeport LNG in Texas, Cameron LNG in Louisiana, and Cheniere Energy's LNG.N Sabine Pass in Louisiana and Corpus Christi in Texas.

Reporting by Scott DiSavino
Editing by Marguerita Choy and Jane Merriman

For gas data on LSEG's Eikon type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the Eikon terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)

NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C