We are expecting a 76 Bcf injection for tomorrow’s storage report for week ending September 11th. US natural gas dry production was higher week on week with domestic production averaging 88.3 Bcf/d for the week. The increase is a result of GoM production returning, as well as Midcon production rising by 0.7 Bcf/d. Total natural gas demand was lower than the previous week. Power burns were lower by 2.1 Bcf/d week-on-week, but this was slightly offset by rising ResComm demand due cooler weather in some parts of the counts (Rockies, Midwest). Canadian imports were once again lower last week averaging 3.8 Bcf/d. Mexican exports averaged of 6.4 Bcf/d. Deliveries to LNG facilities averaged 5.2 Bcf/d, up 2.1 Bcf/d week on week with Sabine having restarted and the first LNG tanker arriving there on Thursday after Laura.
Hurricane Sally has been a slow moving storm. It’s not onshore where it causing major flooding just inland of Tallahassee, FL and Mobile Bay, AL. From the BSEE operators report: 27%, or 497 kbpd of offshore crude oil production from the Eastern block of the Gulf of Mexico was shut and 28%, or 760 mmcf/d of natural gas output form the U.S.-regulated northern Gulf of Mexico was shut as of Tuesday at 11:30 CDT.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 85.3 Bcf/d this morning. Today’s estimated production is -1.03 Bcf/d to yesterday, and -2.25 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 67.1 Bcf today, -1.95 Bcf/d to yesterday, and -2.06 Bcf/d to the 7D average. US power burns are expected to be 32.94 Bcf today, and US ResComm usage is expected to be 8 Bcf.
Net LNG deliveries are expected to be 7.3 Bcf today.
Mexican exports are expected to be 6.1 Bcf today, and net Canadian imports are expected to be 3.6 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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.
ION-Energy-Daily-Report-Sept-16-2020.pdf