EIA NATURAL GAS STORAGE REPORT
Only about five weeks are left in injection season, and we have solid storage numbers with a supply level of more than 22% over the five-year average. Expected storage by the end of injection season will be 1,800 Bcf, which is even better than last year’s numbers.
NATURAL GAS TOTAL DEMAND WITH EXPORTS
Demand for Natural Gas is down in all segments, including residential, commercial, industrial, power burn, and LNG exports. LNG exports dipped to 14.0 Bcf on news that both Freeport and Corpus Christi LNG facilities had partial outages. Another for the slowdown may be that overseas, gas prices for Europe have dipped below $10.00 as they have storage close to 80% capacity.
NATURAL GAS PRODUCTION
LNG Exports are expected to rise in the next three years, with five projects coming online by the end of 2027. Our LNG Exports have been near record highs for most of the last six months, and these export facilities will increase that by more than 60%.
NYMEX CALENDAR STRIPS
DAILY ATC POWER INDEX PRICING LAST 120 DAYS
Chesapeake Energy: Natural Gas Producer News
Chesapeake Energy announced last week that they would reduce drilling in the Utica and Marcellus Shales as the cost of bringing the gas up from them is too expensive compared to what they can sell it for. They want to cut production and bring pricing back to more reasonable levels.
WEATHER: 6-10 DAY AND 8-14 DAY OUTLOOK
A solid warm weather pattern will cover the Eastern half of the US for the next two weeks, lowering demand for natural gas and electricity. The West Coast will see higher demand as a series of cold waves and Atmospheric Rivers continue to hammer up and down the West Coast.
From February 26th to March 2nd, expect varied weather across the United States:
- West Coast: Rain and snow are expected, with temperatures ranging from the 30s to 50s°F.
- Central US and Northeast: A chilly weather system will move through, bringing rain and snow from Wednesday to Friday. Temperatures will drop to as low as the -0s, with highs reaching the 20s to 40s°F. This could lead to a modest increase in national demand for heating, followed by a warming trend back into the 40s to 60s°F.
- Southern and Eastern US: Mild to warm conditions prevail, with highs ranging from the 50s to 80s°F, except for some areas in the 40s°F.
Overall, the week starts with low demand for heating, increasing to moderate levels mid-week due to the colder temperatures, then returning to lighter demand afterward.
