Today’s Fundamentals
Daily US natural gas production is estimated to be 96.4 Bcf/d this morning. Today’s estimated production is -0.04 Bcf/d to yesterday, and -0.29 Bcf/d to the 7D average. There were concerns of lower production due to the Oneok natural gas processing facility explosion on Saturday near Medford, Oklahoma. We could not find the exact size of the facility, but know that the company as a whole has 10 natural gas processing plants with 1.0 Bcf/d of processing capacity in the Mid-Continent region – hence the lost of this one facility will likely be minimal especially if gas can be rerouted to another plant or the NGLs can be left in the natural gas stream.
Some details on the plants: The Medford NGL Plant is a natural gas liquids fractionator. The facility receives raw NGL from two pipelines, the Oklahoma Gathering Pipeline and the FERC Gathering Pipeline. The facility is located 2 miles south of Medford in northern Oklahoma. The products from the fractionator are shipped by truck or pipeline, with the option of raw NGL being routed to a nearby underground storage cavern.
Natural gas consumption is modelled to be 78.5 Bcf today, +2.76 Bcf/d to yesterday, and -0.55 Bcf/d to the 7D average. US power burns are expected to be 40.9 Bcf today, and US ResComm usage is expected to be 8.3 Bcf.
Net LNG deliveries are expected to be 11.2 Bcf today.
Mexican exports are expected to be 6.6 Bcf today, and net Canadian imports are expected to be 5.9 Bcf today.
The storage outlook for the upcoming report is +53 Bcf today.
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NatGas-Daily-Report-July-11-2022.pdf