The heat continued in Texas this past weekend. ERCOT called on residents to conserve energy Friday after six generation facilities tripped offline amid hot weather, prompting power prices to spike. The power-plant failures resulted in a loss of about 2,900 MW. The Texas grid is being stressed by high heat in a potential preview of peak summertime demand.
The next week remains very warm in the South which should lead to high power loads. Here is the latest Euro vs the 10Y normal
Today’s Fundamentals
Daily US natural gas production is estimated to be 95.7 Bcf/d this morning. Today’s estimated production is +0.85 Bcf/d to yesterday, and -0.04 Bcf/d to the 7D average. Starting this weekend, production was lower out of the Midcon and SC.
Natural gas consumption is modelled to be 67 Bcf today, +0.32 Bcf/d to yesterday, and -1.51 Bcf/d to the 7D average. US power burns are expected to be 28.9 Bcf today, and US ResComm usage is expected to be 9.4 Bcf.
Net LNG deliveries are expected to be 12.2 Bcf today. The rise comes with Corpus Christe regaining volumes this weekend. Today’s nomination is 2.06 Bcf/d for the plant which is still ~0.25 Bcf/d below normal levels.
Mexican exports are expected to be 7 Bcf today, and net Canadian imports are expected to be 4.8 Bcf today.
The storage outlook for the upcoming report is +93 Bcf today.
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ION-Energy-Daily-Report-May-16-2022.pdf