Yesterday the EIA posted a bearish storage report that showed 76 Bcf being injected across the lower 48. This was much higher than market expectations. Out of the past 4 storage reports, only last week’s report of +55 was tight while the other 3 showed a weather adjusted storage injection similar to last year. This week’s number seemed quite fair.
The late cycle nomination data yesterday saw Northeast production increased +0.8 Bcf/d as some gas was rerouted. Overall pipeline nominations are still lower by almost 4 Bcf/d. A reuters article pointed the issue to being a leaking NGL pipeline.
“MPLX pipeline monitoring systems detected a release of product from a (natural gas liquids) pipeline at our Majorsville facility in West Virginia”
https://www.reuters.com/business/energy/us-natgas-output-drops-pipeline-upset-west-virginia-2021-07-01/
Today’s Fundamentals
Daily US natural gas production is estimated to be 87.5 Bcf/d this morning. Today’s estimated production is -1.25 Bcf/d to yesterday, and -4.23 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 68.1 Bcf today, -5.03 Bcf/d to yesterday, and -8.8 Bcf/d to the 7D average. US power burns are expected to be 34.9 Bcf today, and US ResComm usage is expected to be 7.8 Bcf.
Net LNG deliveries are expected to be 10.8 Bcf today.
Mexican exports are expected to be 7.2 Bcf today, and net Canadian imports are expected to be 4.6 Bcf today.
The storage outlook for the upcoming report is +22 Bcf today.
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ION-Energy-Daily-Report-July-02-2021.pdf