Gulf Coast Gas Daily Fundamentals – Sep 02nd
Sep-02 11:57By: Erica Blake
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Agua Dulce rose 3 cents and HSC rose 8 cents yesterday, bringing the AD-HSC spread to -$0.04/MMBtu. Transco Z4 fell $1.74/MMBtu and TGP 500 fell $1.38/MMBtu, both trading around $5/MMBtu outright.
- Weather is expected to remain above normal over the next 10 days. For the 5-day outlook compared to normal, Corpus will be 16 days higher, Houston will be 23 days higher, and NOLA will be 13 days higher.
- Gulf Coast demand is down 220 MMcf/d overnight at 26.9 Bcf/d. LNG demand is down 542 MMcf/d and non-LNG demand is up 322 MMcf/d. LNG demand is driven by lower flows to Sabine, and Calcasieu Pass, both in the path of Tropical Storm Edouard. Flows likely declined due to dock and shipping impacts from the storm.
- Production is down 0.5 Bcf/d to 24.4 Bcf/d after a 0.5 Bcf/d upward revision yesterday. Haynesville production is down 532 MMcf/d overnight and Eagle Ford volumes are down 77 MMcf/d. If HV volumes hold intraday, it will be the lowest level since the first week of July.
- Flows are down across the region. Southeast outflows are down 133 MMcf/d, Permian inflows are down 222 MMcf/d with Whistler declines being offset by PHP increases, and Northeast inflows are down 382 MMcf/d.
