Natural gas storage injections remain below five-year average so far this summer
Injections into natural gas storage in the Lower 48 states since April 1 have totaled 950 billion cubic feet (Bcf), according to our July 18 Weekly Natural Gas Storage Report. So far this injection season (April 1–October 31), the amount of natural gas injected into storage (less withdrawals) is 15% (166 Bcf) less than the previous five-year average (2019–23) for the same period and 15% (172 Bcf) less than the same time last year.
Despite the decrease in injections, working natural gas inventories in the Lower 48 states remain relatively high following the warmest winter on record. Natural gas in U.S. storage totaled 3,209 Bcf as of July 12, 17% (465 Bcf) more than the five-year average and 8% (250 Bcf) above last year for the same report week.
Production of natural gas in the United States during the second quarter was similar to last year during the same period. But U.S. natural gas consumption was 3% (3 Bcf/d) more, largely driven by increased consumption in the electric power sector, according to our July Short-Term Energy Outlook (STEO).
In our July STEO, we expect natural gas injections for the remainder of the injection season (July–October) will be 27% (265 Bcf) less than the five-year average, narrowing the surplus in inventory to 6% above the five-year average by the end of the injection season.
Principal contributor: Trinity Manning-Pickett
Tags: natural gas, storage, inventories/stocks