Gas markets around the world continue to rally today. European natgas prices touched 79 euro/MWh with gas shortages being a reality this winter. Governments are starting to step in to ease power costs.
From Bloomberg: “Gas and power prices extended gains in Europe on Tuesday, reaching records in countries including Germany, France, Spain and the U.K. Spain moved to ease the cost of energy bills late Monday, and France said it was considering it, while Greece announced over the weekend a subsidy for all households.”
In NorthAm, Hurricane Nicholas knocked out power and caused heavy rain/flooding along major energy infrastructure. As of this morning, there were around 100K people without power in Texas, with the bulk of those in Matagorda and Galveston counties. LNG feedgas volumes dropped at Freeport, but today nomination show that facility starting to come back already. Sabine volumes remained at almost 4 Bcf/d throughout Ida and Nicholas.
Finally, offshore production is continuing to comeback at a slow and steady pace. As of yesterday only 1.074 Bcf/d of offshore production was shut-in according to the BSEE. We expect a full recovery in two weeks. Overall the production impact will be minimal.
Today’s Fundamentals
Daily US natural gas production is estimated to be 90.3 Bcf/d this morning. Today’s estimated production is -1.14 Bcf/d to yesterday, and -1.46 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 71 Bcf today, -2.37 Bcf/d to yesterday, and +1.15 Bcf/d to the 7D average. US power burns are expected to be 35.4 Bcf today, and US ResComm usage is expected to be 7.2 Bcf.
Net LNG deliveries are expected to be 9.4 Bcf today.
Mexican exports are expected to be 6.8 Bcf today, and net Canadian imports are expected to be 4.8 Bcf today.
The storage outlook for the upcoming report is +80 Bcf today.
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ION-Energy-Daily-Report-Sep-15-2021.pdf