Daily Market Report – June 11, 2021

Natgas prices spiked late yesterday with an update from TETCO on their 30″ system outage, citing that the permit to operate at normal pressures was revoked by the PHMSA due to “an anomaly feature that was identified during a recent EMAT tool run” during an in-line inspection of the pipe.  They ended the notice citing that “the earliest the 30-inch pipeline between Kosciusko and Uniontown will be returned to full service would be late 3rd Quarter of 2021.”

So far there NE production has not been impact, and our initial thought is that there should not be any severe impact as production receipts can be rerouted to other N-to-S pipelines and/or fill available NE storage capacity.

Here is how the term structure changed overnight. The focus of the change being for the rest of summer and winter.

Today’s Fundamentals

Daily US natural gas production is estimated to be  91.2 Bcf/d this morning. Today’s estimated production is -0.84 Bcf/d to yesterday, and -1.12 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 69.1 Bcf today,  -3.61 Bcf/d to yesterday, and -3.3 Bcf/d to the 7D average. US power burns are expected to be 33.8 Bcf today, and US ResComm usage is expected to be 8.4 Bcf.

Net LNG deliveries are expected to be 9.6 Bcf today.

Mexican exports are expected to be 7.7 Bcf today, and net Canadian imports are expected to be 5 Bcf today.

The storage outlook for the upcoming report is +67 Bcf today.

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