Yesterday, the EIA reported at 43 Bcf injection taking storage levels to 3375 Bcf as of August 14th. Stocks are 595 Bcf higher than last year at this time and 442 Bcf above the five-year average of 2,933 Bcf.
The injection were much lower than last year, but inline with the 5Yr average. Salt showed a withdrawal of 2 Bcf, which was less than past year. Salt storage is now sitting well above the 5Yr range. The Pacific region also saw a net withdrawal which was somewhat expected due to the massive heat wave the region has been experiencing since last week.
Our early view for next weeks report is 46 Bcf. The biggest moving piece this week is a ~3 Bcf/d drop in power demand and LNG deliveries picking up by 0.4 Bcf/d. Supply was slight slower with both production and Canadian imports coming in lower.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 85.9 Bcf/d this morning. Today’s estimated production is -0.53 Bcf/d to yesterday, and -0.58 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 73.7 Bcf today, +0.76 Bcf/d to yesterday, and -0.52 Bcf/d to the 7D average. US power burns are expected to be 38.84 Bcf today, and US ResComm usage is expected to be 8.1 Bcf.
Net LNG deliveries are expected to be 5.1 Bcf today.
Mexican exports are expected to be 6.2 Bcf today, and net Canadian imports are expected to be 5 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-Aug-21-2020.pdf