US natural gas inventories near five-year average

Working natural gas stored in the Lower 48 states totalled 2591 billion ft³ as of 21 January, based on data from our Weekly Natural Gas Storage Report. As of 21 January 2022, natural gas in storage was 25 billion ft³, or 1%, less than its previous five-year (2017 – 2021) average for the week. At the beginning of the heating season on 5 November 2022, natural gas in storage was 3618 billion ft³, or 3%, less than its previous five-year average.

Significantly warmer-than-normal temperatures during the early weeks of the heating season lessened space heating demand for natural gas and withdrawals from US natural gas inventories. Heating degree days measure the relative coldness of winter seasons. The National Oceanic and Atmospheric Administration (NOAA) reported 635 cumulative gas-weighted heating degree days for the Lower 48 states from 3 – 30 December 2021, or 12% less than (that is, warmer than) the previous 10-year average.

Natural gas demand in the US residential and commercial sectors averaged 34.5 billion ft³ in December, which is 15% less than the previous five-year average, according to data from IHS Markit. The decreased demand for natural gas in these sectors resulted in lower withdrawals of natural gas from storage compared with the five-year average.

Record-high LNG exports limited increases in US natural gas inventories, despite a much warmer-than-normal December and high natural gas production in the Lower 48 states. In the EIA’s January Short-Term Energy Outlook, it is estimated that US LNG exports averaged 11 billion ft³ from November through January in response to high prices in both Asia and Europe. In particular, inventories in Europe remain much lower than their five-year averages and contributed to increased demand for LNG.

Starting in early January, colder-than-normal temperatures in the Midwest and Northeast US have led to more natural gas demand for space heating, while LNG exports have remained at elevated levels. Net withdrawals from storage exceeded the five-year average in the first three weeks of January by 25%, bringing storage inventories to within 1% of the five-year average.

The EIA forecasts working natural gas inventories in the Lower 48 states will total 1795 billion ft³ at the end of March 2022, which would be 128 billion ft³ (7%) more than the five-year (2017 – 2021) average.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/31012022/us-natural-gas-inventories-near-five-year-average/