Daily Market Report – May 25, 2022

Today’s Fundamentals

Daily US natural gas production is estimated to be  95.2 Bcf/d this morning. Today’s estimated production is -0.13 Bcf/d to yesterday, and -0.55 Bcf/d to the 7D average. Permian gas production volumes fell by about 0.5 Bcf/d yesterday due to maintenance on Northern Natural Gas (NNG) Pipeline’s Spraberry segment. The Spraberry outage ends on 5/30, though it’s likely some production moved from NNG to intrastate pipelines in Midland.

Natural gas consumption is modelled to be 67.5 Bcf today,  -2.52 Bcf/d to yesterday, and -3.26 Bcf/d to the 7D average. US power burns are expected to be 29.1 Bcf today, and US ResComm usage is expected to be 10.1 Bcf.

Net LNG deliveries are expected to be 13.4 Bcf today. After a one day drop in deliveries to Sabine and Corpus Christie, today’s nominations indicate normal operations at the plant. The last time total LNG deliveries were at these levels was Mar 27^th. Since then the combination of extreme southern heat (which reduces facility operations) and maintenance (incoming pipeline and/or facility) has kept LNG volumes low.

Mexican exports are expected to be 6.7 Bcf today, and net Canadian imports are expected to be 4.6 Bcf today.

For week ending May 20th, our S/D storage model is pointing to a +91 Bcf injection while our flow model is much lower with a +82 Bcf. Below is the regional break down of the flow based model + the week storage activity at the 4 facilities that report on a weekly basis.

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.