According to Reuters, buyers of US LNG exports have canceled 40-45 cargoes for August loading due to the slow demand recovery seen in Asia and record high European storage. This mirrors July cancellations in the same range and is higher than the June totals of 20-30 canceled cargoes. The rumors point to about 30 being canceled at Cheniere’s plants and 10 at Freeport LNG.
The exact number of cancellations is yet to be confirmed with some projects having Monday as its deadline.
The premium of gas prices in Europe over the U.S. Henry Hub remains too tight to deliver U.S. cargoes with a profit. The July contract for TTF was trading around $0.16/mmBTU above the NYMEX Henry Hub this morning.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 83.5 Bcf/d this morning. Today’s estimated production is -1. 1 Bcf/d to yesterday, and -1.1 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 69.5 Bcf today, -0.66 Bcf compared to yesterday and +2.24 Bcf to the 7D average. US power burns are expected to be 38.5 Bcf today, and US ResComm usage is expected to be 7.9 Bcf.
Net LNG deliveries are expected to be 4.1 Bcf/d today.
Mexican exports are 5.8 Bcf/d. Net Canadian imports increased to 4.6 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-June-23-2020.pdf