Hurricane Laura is expected to reach the Texas-Louisiana border as a major hurricane and is expected to intensify into a category 4 storm by Wednesday afternoon.
A storm surge warning is in effect from Freeport, Texas, to the mouth of the Mississippi River in southeast Louisiana, including Galveston Bay and areas inside the Port Arthur, Texas, hurricane flood protection system
L48 production is once again lower this morning, but the drop today comes equally from the Northeast and Gulf (including TX, LA, and GoM). The Gulf region as a whole is off by 2.2 Bcf/d. The BSEE reported 1.6 bcf/d of lower production from offshore rigs in their afternoon update yesterday.
LNG is also lower this morning with Sabine closing up yesterday, and Cameron taking only 0.5 Bcf/d (from its regular 1.7 Bcf/d)
Today’s Fundamentals:
Daily US natural gas production is estimated to be 83.2 Bcf/d this morning. Today’s estimated production is -1.23 Bcf/d to yesterday, and -2.47 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 75.6 Bcf today, -2.56 Bcf/d to yesterday, and +0.46 Bcf/d to the 7D average. US power burns are expected to be 41.54 Bcf today, and US ResComm usage is expected to be 8.2 Bcf.
Net LNG deliveries are expected to be 2.8 Bcf today.
Mexican exports are expected to be 6.6 Bcf today, and net Canadian imports are expected to be 5.5 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-Aug-26-2020.pdf