LNG flows continue to be strong this month with December LNG feedgas flows averaging 11.1 Bcf/d so far this month. The price divergence between Henry Hub and other global markets is the key attribute. The ICIS East Asia LNG Index closed at $8.95/MMBtu for January ’21 last week, which is almost a 30% increase in the past couple of weeks. Meanwhile, Henry Hub has been getting weaker with strong supply and a lack of normal winter weather.
ICIS has said that portfolio optimisation along side strong spot demand from buyers in India and China has resulted has led to the price move.
Today’s Fundamentals
Daily US natural gas production is estimated to be 90.8 Bcf/d this morning. Today’s estimated production is -0.12 Bcf/d to yesterday, and -0.07 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 90.6 Bcf today, -4.33 Bcf/d to yesterday, and -7.04 Bcf/d to the 7D average. US power burns are expected to be 27.64 Bcf today, and US ResComm usage is expected to be 32.5 Bcf.
Net LNG deliveries are expected to be 11.2 Bcf today.
Mexican exports are expected to be 6.4 Bcf today, and net Canadian imports are expected to be 5.5 Bcf today.
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ION-Energy-Daily-Report-Dec-10-2020.pdf