US inventories enter the winter with the most natural gas since 2016

Natural gas inventories in the Lower 48 states at the end of March 2024 (the end of withdrawal season) totalled 2282 billion ft³, 25% more than at the same time in 2023 and 40% more than the five-year average for March. This enabled storage operators to reach their end-of-season targets with smaller natural gas injections. Low natural gas prices in 2024 encouraged producers to curtail production, which also reduced natural gas available for injections.

Net injections into natural gas storage during the injection season totalled 1640 billion ft³, 21% less than the five-year average. Weekly injections ranged from a maximum of 96 billion ft³ in late May to 10 billion ft³ in mid-July. Although natural gas is typically injected into storage in the summer, withdrawals occasionally occur, particularly in the Pacific and South Central regions. The US South Central region has exhibited a unique seasonal pattern in recent years with weekly net natural gas withdrawals following early summer injections, particularly at the salt dome facilities, to meet summer cooling demand. For the week ending August 9, withdrawals in the South Central region and Pacific region combined totalled 29 billion ft³, with a net withdrawal of 6 billion ft³ from US natural gas storage, the first net withdrawal from US storage during the summer since July 2016.

Natural gas injections into storage for the weeks ending October 25 and November 1 (the last two weeks of injection season) exceeded their five-year averages, further boosting the volume of natural gas in storage. In our November Short-Term Energy Outlook, we forecast natural gas withdrawals during the 2024 - 25 heating season will total 1957 billion ft³ and that inventories will be 6% above the five-year (2020 - 24) average at the end of March 2025 Natural gas inventories in the Lower 48 states at the end of March 2024 (the end of withdrawal season) totalled 2282 billion ft³, 25% more than at the same time in 2023 and 40% more than the five-year average for March. This enabled storage operators to reach their end-of-season targets with smaller natural gas injections. Low natural gas prices in 2024 encouraged producers to curtail production, which also reduced natural gas available for injections.

Net injections into natural gas storage during the injection season totalled 1640 billion ft³, 21% less than the five-year average. Weekly injections ranged from a maximum of 96 billion ft³ in late May to 10 billion ft³ in mid-July. Although natural gas is typically injected into storage in the summer, withdrawals occasionally occur, particularly in the Pacific and South Central regions. The US South Central region has exhibited a unique seasonal pattern in recent years with weekly net natural gas withdrawals following early summer injections, particularly at the salt dome facilities, to meet summer cooling demand. For the week ending August 9, withdrawals in the South Central region and Pacific region combined totalled 29 billion ft³, with a net withdrawal of 6 billion ft³ from US natural gas storage, the first net withdrawal from US storage during the summer since July 2016.

Natural gas injections into storage for the weeks ending October 25 and November 1 (the last two weeks of injection season) exceeded their five-year averages, further boosting the volume of natural gas in storage. In our November Short-Term Energy Outlook, we forecast natural gas withdrawals during the 2024 - 25 heating season will total 1957 billion ft³ and that inventories will be 6% above the five-year (2020 - 24) average at the end of March 2025.

Read the article online at: https://www.tanksterminals.com/storage-tanks/02122024/us-inventories-enter-the-winter-with-the-most-natural-gas-since-2016/