Over the weekend we officially entered spring which means injection season is near, with warm weather expected to blanket the West, Rockies, and South central in the upcoming week.
With weakened demand and rising US Dry Gas Production, expect additional downward pressure on prices in the short term so long as weather remains somewhat mild.
US Dry gas production is currently sitting at 2021 high’s of 92.8 Bcf/D. Gas Demand for LNG exports also continues its recovery and bullish run reaching new records near almost 12 Bcf/D (see chart), which is likely only going to continue climbing with the completion of the seventh major US liquefaction facility, Calcasieu Pass in Louisiana.
This Venture Global terminal said recently in a US filing that it could ship its first cargo in late 2021, a year ahead of schedule and bullish for LNG demand. Impressively, more than half of the near 12 Bcf/D of demand for LNG exports is from Cheniere Energy’s Sabine Pass in Louisiana and Corpus Christi in Texas.
Source: Gelber & Associates
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