Today the EIA reports natural gas storage inventories for week ending June 19th. We are looking for an 108 Bcf injection. Again we could see some small low side risk due to demand continuously returning as states reopen and as people get more comfortable getting back to work and normal life. The current Bloomberg survey estimate stands at 108 Bcf, while ICE futures were showing 112/113 yesterday.
LNG exports have increased that past two days, jumping from 3.8 Bcf/d on Sunday to an expected 4.8 Bcf/d today. The boost come from increased deliveries to two plants, Cameron LNG and Corpus Christi. Corpus Christi LNG has been operating at 0.4 Bcf/d for all of June, after hitting 1.0+ Bcf/d in the last week of May. Today’s increase at Corpus Christie takes receipts up to 0.7 Bcf/d.
In other LNG project development news:
- Cheniere reported to the FERC in a monthly construction update that Stage 2 development was at 88.8% total completion, and Train 3 was still tracking for a first-half 2021 commercial operation date.
- Freeport LNG has delayed Train 4’s FID to 2021 due to the ongoing market weakness and COVID-19.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 82.7 Bcf/d this morning. Today’s estimated production is -0.92 Bcf/d to yesterday, and -1.72 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 69.9 Bcf today, +0.1 Bcf compared to yesterday and +1.1 Bcf to the 7D average. US power burns are expected to be 37.4 Bcf today, and US ResComm usage is expected to be 8.0 Bcf.
Net LNG deliveries are expected to be 4.8 Bcf/d today.
Mexican exports are 6.1 Bcf/d. Net Canadian imports increased to 4.1 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
This email, any information contained herein and any files transmitted with it (collectively, the Material) are the sole property of OTC Global Holdings LP and its affiliates (OTCGH); are confidential, may be legally privileged and are intended solely for the use of the individual or entity to whom they are addressed. Unauthorized disclosure, copying or distribution of the Material, is strictly prohibited and the recipient shall not redistribute the Material in any form to a third party. Please notify the sender immediately by email if you have received this email by mistake, delete this email from your system and destroy any hard copies. OTCGH waives no privilege or confidentiality due to any mistaken transmission of this email.
ION-Energy-Daily-Report-June-25-2020.pdf