A roundup of news and commentary from NGI’s LNG Insight
- Genscape Inc: U.S. feed gas deliveries hit new low Thursday. Demand fell to 2.8 Bcf/d as of evening nomination cycle for gas day July 9, down 1.1 Bcf/d from June average. Since July 1, feed gas demand has remained relatively steady near 3 Bcf/d, firm said.
- Drop comes as U.S. cargo cancellations continue given uneconomic prices overseas. So far this summer, more than 70 LNG cargoes were canceled for June and July deliveries, and more than 40 cargoes were canceled for August deliveries, Energy Information Administration said this week.
- Given the lack of demand, U.S. storage could approach capacity this fall. EIA forecast this month that working gas in storage could reach more than 4 Tcf at the end of October, the highest monthly total on record and only 5% below EIA’s estimate of demonstrated peak capacity.
- The range “could be problematic since inventories might exceed the EIA’s forecasts due to (1) uncertain U.S. supply/demand, and (2) reduced U.S. LNG exports due to rising European gas storage, trade tension with China (and potentially Europe) and low global gas/LNG prices backing up supply into storage,” said ClearView Energy Partners LLC.
© 2020 Natural Gas Intelligence. All rights reserved.