Deliveries to LNG pick up to 3.9 Bcf/d this morning with Freeport ramping up to meet the losses from Sabine and Cameron. These two facilities still remain down despite both companies saying that the facilities have experience no substantial damage.

 

With the estimated 30 cargo cancellations, we were anticipated LNG delivered volumes to rise above 7 Bcf /d this month. The aftermath of the Hurricane Laura is a small set back for the LNG industry that was on the rise once again.

 

In global LNG news, Chevron’s Gorgon train 2 LNG plant in Australia is now expected to remain offline until October. This plant had been expected to restart in September, after being on extended maintenance outage after weld cracks were found in propane heat exchangers. Chevron is expected to carry out detailed inspections on the other two trains in November and January.

 

Today’s Fundamentals:

Daily US natural gas production is estimated to be  85.5 Bcf/d this morning. Today’s estimated production is -0.55 Bcf/d to yesterday, and -0.61 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 73.4 Bcf today,  +0.53 Bcf/d to yesterday, and +2.09 Bcf/d to the 7D average. US power burns are expected to be 38.94 Bcf today, and US ResComm usage is expected to be 7.6 Bcf.

Net LNG deliveries are expected to be 3.9 Bcf today.

Mexican exports are expected to be 6.8 Bcf today, and net Canadian imports are expected to be 4.2 Bcf today.

Bloomberg IM: Het Shah
enelyst DM:
@het.co
Tel: 917-975-2960

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