Daily Market Report – May 02, 2022

Today’s Fundamentals

Daily US natural gas production is estimated to be  95.8 Bcf/d this morning. Today’s estimated production is +0.44 Bcf/d to yesterday, and +0.15 Bcf/d to the 7D average. Bakken production continued to resume over the weekend, but its still approximately 0.5 Bcf/d lower than normal. The Marcellus/Utica basin production levels have also been slowly recovering to now above 34 Bcf/d. This is still quite far from the 35.5+ Bcf/d reached in late-December.

Natural gas consumption is modelled to be 71.5 Bcf today,  +1.73 Bcf/d to yesterday, and -3.11 Bcf/d to the 7D average. US power burns are expected to be 27.6 Bcf today, and US ResComm usage is expected to be 15.9 Bcf. CDDs starting to become dominant starting next week, which should start to boost power burns. As we noted in the past, the lack of hydro and low coal availability should put more pressure on gas units to fill the gap.

Net LNG deliveries are expected to be 12.2 Bcf today. Freeport continues to struggle this weekend after the maintenance on T1 was to be completed on Apr 27^th. Cameron currently has T1 undergoing maintenance, but  the duration is unknown at this time.

Mexican exports are expected to be 6.9 Bcf today, and net Canadian imports are expected to be 5.3 Bcf today.

The storage outlook for the upcoming report is +74 Bcf today.

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