LNG feedgas deliveries averaged 11 Bcf/d over the last week with some facilities returning to full output level and others reducing operations. Sabine lowered its operational level by 0.5 Bcf/d over the weekend to 3.3 Bcf/d. We don’t know of any specific maintenance at the facility at this time.

Going into the winter we expect levels to reach 12 Bcf/d very easily as the US LNG facilities ramp up to capitalize on the massive price arb between US and all other global destinations. Below is the current 12 month forward strip showing a huge spread for winter and beyond.



Today’s Fundamentals

Daily US natural gas production is estimated to be  92.3 Bcf/d this morning. Today’s estimated production is -0.1 Bcf/d to yesterday, and +0.13 Bcf/d to the 7D average.

Natural gas consumption is modelled to be 69.5 Bcf today,  +0.58 Bcf/d to yesterday, and +0.49 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 16 Bcf.

Net LNG deliveries are expected to be 11.1 Bcf today.

Mexican exports are expected to be 6.3 Bcf today, and net Canadian imports are expected to be 5.2 Bcf today.

The storage outlook for the upcoming report is +90 Bcf today.

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