Natural gas futures remain elevated this morning. Relative to Friday, dry gas production is slightly lower but we expected a small bump higher with the TCO maintenance being completed. Demand is also bit lower particularly due to power burns coming off. Last week Texas faced a drop in renewables, and California had a major heat wave begin. Today’s burns are expected to be 4 Bcf/d below Friday’s levels.
Finally, this weekend we saw another uptick in LNG. Current deliveries are 4.9 Bcf/d, or 0.44 Bcf/d higher than Friday.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 86 Bcf/d this morning. Today’s estimated production is -0.41 Bcf/d to yesterday, and -0.18 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 74.5 Bcf today, +1.03 Bcf/d to yesterday, and -3.21 Bcf/d to the 7D average. US power burns are expected to be 39.84 Bcf today, and US ResComm usage is expected to be 8 Bcf.
Net LNG deliveries are expected to be 4.9 Bcf today.
Mexican exports are expected to be 6.2 Bcf today, and net Canadian imports are expected to be 4.5 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
This email, any information contained herein and any files transmitted with it (collectively, the Material) are the sole property of OTC Global Holdings LP and its affiliates (OTCGH); are confidential, may be legally privileged and are intended solely for the use of the individual or entity to whom they are addressed. Unauthorized disclosure, copying or distribution of the Material, is strictly prohibited and the recipient shall not redistribute the Material in any form to a third party. Please notify the sender immediately by email if you have received this email by mistake, delete this email from your system and destroy any hard copies. OTCGH waives no privilege or confidentiality due to any mistaken transmission of this email.
ION-Energy-Weekend-Report-Aug-16-2020.pdf