EIA Natural Gas Storage Report 12-18-25

Tony Zelinski
2 hours ago
2 min read

The U.S. Energy Information Administration (EIA) reported a 167 Bcf withdrawal from natural gas storage for the week ending December 12, 2025. Total working gas now stands at 3,579 Bcf, down from 3,746 Bcf the prior week.

This marks a sharp seasonal draw, driven by widespread cold weather across the Lower 48. Inventories are now 61 Bcf below last year’s level but remain 32 Bcf above the five-year average of 3,547 Bcf.

🔍 Regional Breakdown

East: -46 Bcf
Midwest: -64 Bcf
Mountain: -6 Bcf
Pacific: -2 Bcf
South Central: -48 Bcf (Salt -16 Bcf, Nonsalt -33 Bcf)

All regions posted net withdrawals, with the Midwest leading the draw.

📈 Market Context

Henry Hub prompt contract traded near $5.25/MMBtu, supported by colder forecasts and strong LNG demand.
Production remains resilient, averaging ~109 Bcf/d, but weather-driven demand is outpacing supply.
LNG feedgas flows continue near record highs, adding to overall demand pressure.

🌡️ Weather & Demand Outlook

Heating Degree Days (HDDs) surged across the Midwest and Northeast, driving residential/commercial demand higher.
Forecasts point to continued cold through late December, suggesting further sizable withdrawals ahead.
Power burn remains steady, while industrial demand is holding firm.

🧭 Strategic Takeaways

Inventories are tightening: now below year-ago levels, though still above the 5-year average.
Weather risk dominates: sustained cold could accelerate draws and push prices higher.
Supply strength offers some cushion, but LNG exports and winter demand are key swing factors.

📌 Bottom Line: The 167 Bcf withdrawal underscores how quickly cold weather can reshape balances. With inventories slipping below last year’s levels, the market is entering winter with a mix of cushion and risk—setting the stage for heightened volatility into January.

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Sources:

Natural Gas Futures