Natural gas deliveries to LNG facilities dropped with the start July as global markets continue to push back on US LNG. The expected cancellation of 40-50 cargos – spread across Sabine, Corpus Christie and Freeport – has dropped LNG deliveries to 3.2 Bcf/d today.
The biggest movers this month to take LNG to these levels is the Cameron and Freeport facilities. Cameron’s average intake of 1.64 Bcf/d in June has dropped to 0.93 Bcf/d in July. Freeport’s average intake of 0.16 Bcf/d in June has dropped to 0.05 Bcf/d in July.
Today’ the EIA reports storage levels for week ending June 26th. Our expectation holds at a +75 Bcf injection.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 83.9 Bcf/d this morning. Today’s estimated production is -0.56 Bcf/d to yesterday, and -0.59 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 72.2 Bcf today, +0.98 Bcf compared to the yesterday and +2.0 Bcf to the 7D average. US power burns are expected to be 39.8 Bcf today, and US ResComm usage is expected to be 7.3 Bcf.
Net LNG deliveries are expected to be 3.2 Bcf/d today.
Mexican exports are 6.0 Bcf/d. Net Canadian imports increased to 4.0 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-July-2-2020.pdf