From: research
Sent: Tuesday, June 02, 2020 7:08:19 AM (UTC-06:00) Central Time (US & Canada)
To: research
Subject: Daily Market Report – June 2, 2020
LNG deliveries dropped further in later noms yesterday – settled at 3.6 Bcf/d for June 1st. Today the deliveries are at 3.4 Bcf/d with Sabine Pass taking only 28% of the peak we have observed at that plant. July and Aug look like they could be just as low with spreads to Europe and Asia indicating a tough summer for US LNG exports.
If the average for June ends up at 3.5 Bcf/d, our rough calculation shows approximately 50 cargo cancelled for June. This is a lot higher than the ~25 cargo rumored.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 83.2 Bcf/d this morning. Today’s estimated production is -0.8 Bcf/d to yesterday, and -1.8 Bcf/d to the 7D average.
Natural gas consumption is modelled to be 64.3 Bcf today, -1.8 Bcf compared to yesterday and -0.8 Bcf to the 7D average. US power burns are expected to be 30.9 Bcf today, and US ResComm usage is expected to be 7.7 Bcf.
Net LNG deliveries are expected to be 3.4 Bcf/d today.
Mexican exports are 5.4 Bcf/d. Net Canadian imports dropped to 3.9 Bcf/d.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-June-2-2020.pdf