EIA Natural Gas Storage Report 05-25-23
Summary
Working gas in storage was 2,336 Bcf as of Friday, May 19, 2023, according to EIA estimates. This represents a net increase of 96 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show an injection at about 106 Bcf.
Stocks were 529 Bcf higher than last year at this time and 340 Bcf above the five-year average of 1,996 Bcf. At 2,336 Bcf, total working gas is within the five-year historical range.
The 12- and 24-month natural gas strip prices remained relatively stable from last week, settling at $3.099/Dth and $3.456/Dth respectively.
According to industry experts, US natural gas production growth could stall until more LNG export capacity comes online later this decade. Production climbed throughout 2022 as global gas prices jumped, LNG export capacity surged, and gas-fired power demand rose as US coal plants continued to retire. However, various factors are to blame for the slowdown – Permian and Haynesville basin challenges, insufficient demand growth, and inadequate midstream infrastructure.
A cool front has moved off the East Coast and a below-normal air mass will remain in place across the Midwest and East for the next couple of days. Meanwhile, unsettled weather across the South will keep temperatures mild with scattered showers and thunderstorms through the weekend, especially in the Southeast and lower Mid-Atlantic states. Temperatures will gradually warm above normal throughout the Midwest and East next week with cooling demand developing across the Ohio Valley and PJM. The main warmth in the West will be from the interior Northwest across the Rockies and into the Four-Corners region. California and the Southwest will average below normal through next week.
U.S. natural gas production growth could be on pause until more LNG export capacity comes online later this decade, panelists speaking from Hart Energy’s Super Dug conference in Fort Worth, TX said recently.
From January to September 2022, U.S. gas production leaped about 5-6 Bcf/d, as global gas prices surged, U.S. LNG export capacity expanded and domestic gas-fired power demand jumped as U.S. coal plants continued to retire. Since topping 101 Bcf/d last fall, though, US gas production growth appears to have largely stalled out, data from S&P Global Commodity Insights showed.
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