Friday, March 5, 2021

EIA Natural Gas Weekly Update

 For the second consecutive wee we did not get to the natural gas storage report as equities took precedence (and full attention)

For the estimates going into yesterday's report here is FX Empire, the report itself at the EIA, and the weekly price chart from the CME after the jump.

From the Energy Information Administration:

Natural Gas Weekly Update 

In the News:

U.S. LNG exports continued to grow in 2020

U.S. exports of liquefied natural gas (LNG) continued to grow in 2020, averaging 6.6 billion cubic feet per day (Bcf/d) on an annual basis and increasing 1.6 Bcf/d (32%) year-on-year, according to U.S. Energy Information Administration’s recently published Natural Gas Monthly, which now includes data through the end of 2020. U.S. LNG exports were at relatively high levels from January through May. In the summer months, they declined to record lows following record declines in international natural gas and LNG prices. By October, U.S. LNG exports started to increase, despite brief interruptions caused by hurricanes Laura and Delta. In November and December 2020, U.S. LNG exports reached an all-time high as spot prices in Asia increased following a period of extremely cold weather and unplanned outages at LNG export facilities in several countries reduced global LNG supply.

U.S. LNG exports increased as new LNG export capacity was added in 2020. The third and final liquefaction units (called trains) at Freeport LNG and Cameron LNG started commercial operations in May and August, respectively. The third train at the Corpus Christi LNG facility in Texas loaded its first cargo in December, six months ahead of schedule, and the remaining small-scale moveable modular liquefaction system units at Elba Island entered commercial service by August.

Asia overtook Europe to become the main destination for U.S. LNG exports in 2020, accounting for 47% (3.1 Bcf/d) of total exports, an increase of 1.2 Bcf/d (67%) compared to 2019. The largest increase in U.S. LNG exports was to China, which grew to 0.6 Bcf/d in 2020 after China lowered tariffs on imports of LNG from the United States from 25% to 10%. In comparison, in 2019, when tariffs were at 25%, only two LNG cargoes from the United States were shipped to China. India also increased imports of LNG from the United States by 0.1 Bcf/d year-on-year, particularly in the spring and summer months of 2020, when LNG prices were at record lows. U.S. LNG exports to Japan grew by 0.2 Bcf/d year-on-year, primarily in the fourth quarter of 2020 with the start of the new long-term contracts and increased seasonal winter demand.

U.S. LNG exports to Europe also increased in 2020, averaging 2.5 Bcf/d, an increase of 0.6 Bcf/d from the prior year. Europe was the main destination for U.S. LNG exports in 2019, accounting for 39% of total exports as warm winter weather in Asia and declining price differentials between spot natural gas prices in Europe and Asia led to increased volumes of U.S. LNG exports delivered to Europe. In 2020, compared to the prior year, U.S. LNG exports increased primarily to Turkey (by 0.3 Bcf/d), United Kingdom, Spain, Greece, and Lithuania (by about 0.1 Bcf/d to each country)....


From the CME the last week's price action (30-minute candles):