Hurricane Laura Dropping Production But Also LNG Feedgas

Written by on August 26, 2020 in NatGasWeather - No comments

Wednesday, August 26:  Volatile trade is expected the next few days as the nat gas markets evaluate impacts from Hurricane Laura as it makes landfall along the East Texas/Louisiana border late today, as well expiration of Sep’20 contracts the next two days.   Production dropped around 2 Bcf per day due to Marco and Laura, although we project LNG feedgas dropping an equivalent amount today to around 2.75 Bcf, aided by shutdown of the Sabine Pass LNG facility where the storm is expected to track over after reaching Category 2 or 3 strength with 105-120 mph winds.  Once Laura makes landfall, it will bring heavy rain, clouds, cooling, and power outages for lighter national demand.  We expect LNG feedgas and production losses to continue through Friday, if not longer.

Recent satellite imagery of Hurricane Laura as it approaches Texas/Louisiana border later today.

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