Daily Market Report – July 30, 2020

Jul 30, 2020

Today the EIA is set to release the storage report for week ending July 24th. Our estimate continues to remain at +22 Bcf, with most in the same range. The Bloomberg survey is currently at +21 Bcf.

 

We will be focused on LNG deliveries this weekend as we roll in to August. The level on August 1st should give us a good indication of the level of cargo cancellations for the new month. The deliveries to LNG facilities have averaged 3.27 Bcf/d throughout July, with a range of 2.86 to 3.97 Bcf/d. Today’s nomination shows LNG plants taking 3.4 Bcf/d. Freeport has taken volumes starting yesterday after being idle for 3 weeks. Its not clear why they suddenly started taking volumes, but there are two  LNG tankers scheduled to arrive at the facility in mid-August (one on the 12th, and the other on the 14th.)

 

 

Freeport the last 60 days

 

Here are how current LNG spread stand

 

 

 

Today’s Fundamentals:

Daily US natural gas production is estimated to be  85.7 Bcf/d this morning. Today’s estimated production is +0.02 Bcf/d to yesterday, and -0.41 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 79.4 Bcf today,  +1.46 Bcf/d to yesterday, and +1.96 Bcf/d to the 7D average. US power burns are expected to be 45.34 Bcf today, and US ResComm usage is expected to be 7.9 Bcf.

Net LNG deliveries are expected to be 3.4 Bcf today

Mexican exports are expected to be 6.3 Bcf today, and net Canadian imports are expected to be 4.9 Bcf today.

Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960

 

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