Daily Market Report – March 17, 2021

LNG levels have rebounded back after the pullback in February. Today’s nomination data has LNG feedgas setting a new peak level of 11.68 Bcf/d. This breaks the high of 11.6 Bcf/d set on Dec 13^th.

We expect that US LNG feedgas levels will be 10.6 Bcf/d or 85% capacity utilization over summer 2021. The LNG economics suggest the US will flow at strong levels, and prior to summer 2020, the utilization during the summer averaged between 81-84%.

We used 85% to account for the strong pull from Europe this coming summer.

Today’s Fundamentals:

Daily US natural gas production is estimated to be  91.9 Bcf/d this morning. Today’s estimated production is -0.27 Bcf/d to yesterday, and -0.16 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 82.1 Bcf today,  -6.95 Bcf/d to yesterday, and +1.52 Bcf/d to the 7D average. US power burns are expected to be 26.34 Bcf today, and US ResComm usage is expected to be 27.6 Bcf.

Net LNG deliveries are expected to be 11.7 Bcf today.

Mexican exports are expected to be 6.5 Bcf today, and net Canadian imports are expected to be 5 Bcf today.

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