The power outage issue across the country is slowly being resolved. According to poweroutages.us, there are now less than 1M people without power across the country. The situation in Texas has changed considerably with only 558k people now facing power issues (from over 4.5M).
Production continues to be shut-in across the country, with South Central production being the largest problem. Today’s production is expected to be 71.1 Bcf/d which is 20 Bcf/d lower than the levels seen just 10 days ago. Its still uncertain how fast the situation improves. The issues seems to be bad though because yesterday evening the Texas Governor ordered a ban on natural gas exports from the state so that power restoration could be accelerated. This might not last long as demand in the area is quickly dropping as temps rise and power systems are being restored fast.
To help alleviate the drop in production, we continue to see more imports from Canada and less being exported to Mexico and LNG. Today’s LNG feedgas levels were 4.6 Bcf/d – a big improvement from the levels seen just two days ago.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 71.1 Bcf/d this morning. Today’s estimated production is +0.61 Bcf/d to yesterday, and -8.8 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 113.6 Bcf today, -4.64 Bcf/d to yesterday, and -8.2 Bcf/d to the 7D average. US power burns are expected to be 28.24 Bcf today, and US ResComm usage is expected to be 54.5 Bcf.
Net LNG deliveries are expected to be 4.5 Bcf today.
Mexican exports are expected to be 5.8 Bcf today, and net Canadian imports are expected to be 8.2 Bcf today.
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ION-Energy-Daily-Report-Feb-18-2021.pdf