Working gas in storage was 3,626 Bcf as of Friday, December 8, 2017, according to EIA estimates. This represents a net decrease of 69 Bcf from the previous week. Stocks were 201 Bcf less than last year at this time and 27 Bcf below the five-year average of 3,653 Bcf. At 3,626 Bcf, total working gas is within the five-year historical range.
Gas in storage should be well below the 5-year average when we get to December 31.
5-year average draws for the next three weeks are:
Week ending
Dec 15 = 132 Bcf
Dec 22 = 114 Bcf
Dec 29 = 123 Bcf
The states around the Great Lakes burn the most gas from storage for space heating and they will remain quite cold through year-end. Colder than normal air deep into South Texas next week.
Natural Gas Storage Report - Dec 14
Natural Gas Storage Report - Dec 14
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Storage Report - Dec 14
Gas Demand to Get Boost. Bloomberg.
Demand for natural gas will continue to rise over the next two decades, stimulated by lower prices resulting from an expected surge in supplies of shale gas and other unconventional resources, according to the Gas Exporting Countries Forum. Natural gas consumption will rise 53 percent by 2040, with demand catching up with supply in the next two or three years, the Doha-based group said Thursday in its “Global Gas Outlook 2017” report. Growing extraction of shale, tight gas and coal-bed methane in the U.S. and China will “dramatically increase natural gas demand over the outlook period,” it said. “This is mainly due to lower prices resulting from higher natural gas supplies.” Gas markets have been transformed by the rise of U.S. shale and Australian exports. These changes are expected to continue as unconventional resources almost double from 16 percent of gas supply today to more than 30 percent in 2040, according to the report. More supply has depressed prices while also spurring demand, a dynamic the GECF expects will re-balance the market by 2020.
Demand for natural gas will continue to rise over the next two decades, stimulated by lower prices resulting from an expected surge in supplies of shale gas and other unconventional resources, according to the Gas Exporting Countries Forum. Natural gas consumption will rise 53 percent by 2040, with demand catching up with supply in the next two or three years, the Doha-based group said Thursday in its “Global Gas Outlook 2017” report. Growing extraction of shale, tight gas and coal-bed methane in the U.S. and China will “dramatically increase natural gas demand over the outlook period,” it said. “This is mainly due to lower prices resulting from higher natural gas supplies.” Gas markets have been transformed by the rise of U.S. shale and Australian exports. These changes are expected to continue as unconventional resources almost double from 16 percent of gas supply today to more than 30 percent in 2040, according to the report. More supply has depressed prices while also spurring demand, a dynamic the GECF expects will re-balance the market by 2020.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Storage Report - Dec 14
China suffers natural gas shortage as coal ban backfires. AP.
Chinese authorities have commandeered supplies of natural gas to heat homes, forcing chemical plants and factories to shut down, after efforts to clear smog-choked air by banning coal use backfired by causing energy shortages in frigid weather. The disruption highlights the government's difficulties in its campaign to clean up China's smog-choked cities and reduce reliance on coal. The latest shortages stem from Beijing's effort since 2013 to shift 3 million households in China's north to gas. That boosted demand while supplies failed to keep pace. The overall economic impact is unclear, but gas supplies to factories and other industrial users in areas throughout China have been reduced or cut off. "The situation is quite serious due to the suspension of gas supplies to industrial and commercial consumers in hopes of meeting the demand from civilian use," said Chen Yunying, a gas industry analyst for ICIS in Shanghai. On Monday, the Chinese-led Asian Infrastructure Investment Bank announced it approved a $250 million loan to connect some 220,000 rural Chinese households to a natural gas distribution network.
Chinese authorities have commandeered supplies of natural gas to heat homes, forcing chemical plants and factories to shut down, after efforts to clear smog-choked air by banning coal use backfired by causing energy shortages in frigid weather. The disruption highlights the government's difficulties in its campaign to clean up China's smog-choked cities and reduce reliance on coal. The latest shortages stem from Beijing's effort since 2013 to shift 3 million households in China's north to gas. That boosted demand while supplies failed to keep pace. The overall economic impact is unclear, but gas supplies to factories and other industrial users in areas throughout China have been reduced or cut off. "The situation is quite serious due to the suspension of gas supplies to industrial and commercial consumers in hopes of meeting the demand from civilian use," said Chen Yunying, a gas industry analyst for ICIS in Shanghai. On Monday, the Chinese-led Asian Infrastructure Investment Bank announced it approved a $250 million loan to connect some 220,000 rural Chinese households to a natural gas distribution network.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Storage Report - Dec 14
First vessel heads for Cove Point LNG export facility. Reuters.
The first liquefied natural gas vessel was headed Thursday for Dominion Energy Inc’s Cove Point LNG export facility in Maryland, a Reuters interactive map showed, with the facility expected to enter service by the end of the year. Cove Point will be the second large LNG export terminal in the lower 48 U.S. states, after Cheniere Energy Inc’s Sabine Pass terminal in Louisiana, which exported its first cargo in February 2016. The vessel, the Maran Gas Delphi, which is currently entering the Chesapeake Bay, is expected to arrive at the $4 billion terminal later Thursday. It can hold about 3.3 billion cubic feet (bcf) natural gas. One bcf is enough fuel for about 5 million U.S. homes.
With Sabine Pass, Cove Point and a couple of other export terminals under construction, the United States is expected to have the third-biggest LNG export capacity in the world by the end of 2018.
Total U.S. export capacity is estimated to be 19 Bcf per day by 2020. < This includes pipeline and LNG capacity.
The first liquefied natural gas vessel was headed Thursday for Dominion Energy Inc’s Cove Point LNG export facility in Maryland, a Reuters interactive map showed, with the facility expected to enter service by the end of the year. Cove Point will be the second large LNG export terminal in the lower 48 U.S. states, after Cheniere Energy Inc’s Sabine Pass terminal in Louisiana, which exported its first cargo in February 2016. The vessel, the Maran Gas Delphi, which is currently entering the Chesapeake Bay, is expected to arrive at the $4 billion terminal later Thursday. It can hold about 3.3 billion cubic feet (bcf) natural gas. One bcf is enough fuel for about 5 million U.S. homes.
With Sabine Pass, Cove Point and a couple of other export terminals under construction, the United States is expected to have the third-biggest LNG export capacity in the world by the end of 2018.
Total U.S. export capacity is estimated to be 19 Bcf per day by 2020. < This includes pipeline and LNG capacity.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group