Yesterday, the EIA reported a 93 Bcf injection taking total gas inventories to 2807 Bcf for week ending June 5th. This number was close to market estimates; hence there was not much price movement on the release of the report. With that injection, stocks are now 748 Bcf higher than last year at this time and 421 Bcf above the five-year average of 2,386 Bcf.
Total nat gas deliveries dropped back to 3.8 Bcf/d this morning as Sabine Pass reached a new low. Sabine Pass is nominated to take only 0.8 Bcf/d this morning. This level indicating that only 1 train out of the 5 is in operation or multiple trains are running at very low utilization rates.
Another noteworthy development on the LNG side is the arrival of the Madrid Spirit LNG Tanker to Elba LNG’s terminal. This tanker originally loaded up a cargo in Nigeria on May 25, 2020. The vessel arrived with a laden draught of 11.4m out of a max draught of 12.3m, indicating it was almost full. It will be interesting to see if the tanker discharges at Elba or picks up more gas and heads to another destination.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 84.1 Bcf/d this morning. Today’s estimated production is +0.1 Bcf/d to yesterday, and -0.1 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 67.3 Bcf today, 0.13 Bcf compared to yesterday and +0.13 Bcf to the 7D average. US power burns are expected to be 34.1 Bcf today, and US ResComm usage is expected to be 8.0 Bcf.
Net LNG deliveries are expected to be 3.8 Bcf/d today.
Mexican exports are 5.6 Bcf/d. Net Canadian imports increased to 4.1 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-June-12-2020.pdf