LNG feedgas hit 8.88 Bcf/d yesterday as Cameron and Freeport ramped up intake. For three days early this week, Freeport dropped its feedgas levels to approximately 1.6 Bcf/d but is not back to taking 2+ Bcf/d. Cameron has boosted it’s feedgas levels to 1.2 Bcf/d. Another tanker departed the Cameron facility yesterday with a draft under 36 feet. It seems that tankers are lining up to get to Cameron despite not being able to reach its full load.
The spreads between HH and other global markets has been increasing over the last few month. The spread between Henry Hub and JKM is over $3 until January, and then above $2 for the foreseeable future. At these levels, we are expecting US LNG to flow at high levels as soon as physically possible (I.e. Sabine and Cameron can run at optimal levels).
Today’s Fundamental’s
Daily US natural gas production is estimated to be 88.5 Bcf/d this morning. Today’s estimated production is -0.49 Bcf/d to yesterday, and -0.46 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 72.1 Bcf today, +0.82 Bcf/d to yesterday, and -3.52 Bcf/d to the 7D average. US power burns are expected to be 314 Bcf today, and US ResComm usage is expected to be 12.4 Bcf.
Net LNG deliveries are expected to be 8.7 Bcf today.
Mexican exports are expected to be 6.4 Bcf today, and net Canadian imports are expected to be 4 Bcf today.
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ION-Energy-Daily-Report-Oct-22-2020.pdf