EIA Natural Gas Storage Report 03-09-23
Summary
Working gas in storage was 2,030 Bcf as of Friday, March 3, 2023, according to EIA estimates. This represents a net decrease of 84 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show a decrease at about 84 Bcf.
Stocks were 493 Bcf higher than last year at this time and 359 Bcf above the five-year average of 1,671 Bcf. At 2,030 Bcf, total working gas is within the five-year historical range.
The 12- month Natural Gas strip price dropped from last week. settling at $3.385/Dth (down 4.03%). The 24-month strip price remained relatively stable.
Gas markets in the central and eastern US are not responding to forecasts calling for sharply colder weather heading into the weekend, thus expected spikes in heating demand and storage withdrawals. However, weather models are predicting a good chance for colder-than-average temperatures in the next two weeks in these regions. This should fuel a rise in total gas demand and possibly raise prices.
The storm track will be shifting farther south this weekend and much of next week, allowing for colder air to invade the Midwest, Ohio Valley, Mid Atlantic and Northeast, along with the probability of mixed wintry weather at times. Heating demand will increase some and average a bit above normal through the middle of March. The South will cool down closer to normal. Stormy and cold weather continues out West, but some moderation is likely this weekend and next week. Temperatures should get back closer to normal in the Southwest but stay below average in the Northwest, interior West, and the Rockies.
Freeport LNG received approval from FERC yesterday to restart Train 1, the third and final remaining train, which when fully operational will bring total feed gas at Freeport to ~2 Bcf/d. Latest feed gas deliveries have been sporadic and fluctuating between 1.7 to 0.7 Bc/d as the facility ramps up from the extended outage with full production across the three trains expected to occur “over the next few weeks” per a Freeport statement.
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Read more: EIA
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