as expected + 76
ICE eos storage 3450 > i think too high
ng inventory
Re: ng inventory
Heading into next winter the U.S. needs 3,800 to 4,000 Bcf in storage to make it thru a cold winter. If La Nina hangs around through year-end, the chance of a colder than normal winter in the U.S. will be high.
In the real world, the utility companies that deliver natural gas to homes and businesses for space heating MUST keep the pressure in the residential delivery systems at a consistent pressure. If storage levels get too low early in the winter, the utility companies will cut off delivery to commercial customers if necessary. Prior to that happening, some businesses that consume a lot of gas will sell their gas supply contracts to the utilities at very high prices. This has happened before.
In the real world, the utility companies that deliver natural gas to homes and businesses for space heating MUST keep the pressure in the residential delivery systems at a consistent pressure. If storage levels get too low early in the winter, the utility companies will cut off delivery to commercial customers if necessary. Prior to that happening, some businesses that consume a lot of gas will sell their gas supply contracts to the utilities at very high prices. This has happened before.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group