Daily Market Report – June 29, 2022

The global LNG spreads continue to stay wide this morning. US LNG deliveries have been around 10.7 Bcf/d for the last few days without Freeport. This level seems to be what we should expect for the summer month with the ambient temps lowering the operational level of the gulf coast facilities. As seen in the table below, Sabine is currently operating at 80% of its peak observed level. With any relief from extreme heat, we should see overall deliveries jump well above 11 Bcf/d.

Current spreads:

Today’s Fundamentals

Daily US natural gas production is estimated to be  95.5 Bcf/d this morning. Today’s estimated production is -0.39 Bcf/d to yesterday, and -0.86 Bcf/d to the 7D average. The drop in production out of the SC and NE were slightly revised higher in later nomination cycles, but overall the lower level continues today.

Natural gas consumption is modelled to be 74.4 Bcf today,  +0.35 Bcf/d to yesterday, and -0.4 Bcf/d to the 7D average. US power burns are expected to be 39.2 Bcf today, and US ResComm usage is expected to be 8.1 Bcf.

Net LNG deliveries are expected to be 10.7 Bcf today.

Mexican exports are expected to be 7.2 Bcf today, and net Canadian imports are expected to be 5.7 Bcf today.

For week ending June 24th, our S/D storage model is pointing to a +78 Bcf injection while our flow model is higher with a +79 Bcf. Below is the regional break down of the flow based model + the week storage activity at the 4 facilities that report on a weekly basis.

NOTE: It looks the EIA is started to get their systems back to normal. The EIA930 power data is still not available, but the oil inventory data is to be published today.

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.