Yesterday, the EIA reported a 45 Bcf injection into natural gas storage inventories for the week ending Aug 21, a figure that was right in line with consensus but below the year-ago and five-year average builds. Next week’s report is expected to have a wide range. Our early view is currently a 39 Bcf injection. Lot of moving parts for week ending Aug 28 – prod lower, Cad imports higher, power burns higher, LNG lower.
It appears the LA-TX energy corridor survived the hurricane but there are no concrete reports on that yet. Most companies are still evaluating facilities ahead of restart plans. For today’s noms, LNG deliveries are up wit Corpus Christie rising substantially. Cameron is still taking 0 this morning, but Sabine shows some signs of life by taking 9 mmcf/d.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 84.5 Bcf/d this morning. Today’s estimated production is +0.3 Bcf/d to yesterday, and -0.65 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 73.8 Bcf today, -1.83 Bcf/d to yesterday, and -2.59 Bcf/d to the 7D average. US power burns are expected to be 42.84 Bcf today, and US ResComm usage is expected to be 7.9 Bcf.
Net LNG deliveries are expected to be 2.8 Bcf today.
Mexican exports are expected to be 6.7 Bcf today, and net Canadian imports are expected to be 4.9 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-Aug-28-2020.pdf