EIA - Natural Gas Storage Report - Sept 23
Posted: Thu Sep 23, 2021 9:55 am
Working gas in storage was 3,082 Bcf as of Friday, September 17, 2021, according to EIA estimates.
This represents a net increase of 76 Bcf from the previous week.
Stocks were 589 Bcf less than last year at this time and 229 Bcf below the five-year average of 3,311 Bcf.
At 3,082 Bcf, total working gas is within the five-year historical range.
We move one week closer to winter and the deficit to the 5-year average increases by 5 Bcf.
Over the last five weeks the deficit to the 5-year average has increased by 57 Bcf.
There are now just eight weeks remaining before draws from storage begin. The 5-year average builds for the eight weeks totals 420 Bcf. So, assuming we can add that same amount to storage this year, we will begin the winter heating season with 3,502 Bcf in storage. It is estimated that the U.S. needs ~3,800 Bcf in storage to make it thru a normal winter without taping into "base load".
Utilities should now be bringing back online as many coal fired power plants as they can. The problem is that so many of our coal fired plants have been shut down for good that this is no longer the solution to a gas shortage that it use to be.
If LNG exports remain near capacity we will see some regional gas shortages and some very high spot market gas prices. The bidding war between Asia and Europe will push global natural gas prices to levels never seen before.
The propane shortage is MUCH WORSE and a very serious problem.
This represents a net increase of 76 Bcf from the previous week.
Stocks were 589 Bcf less than last year at this time and 229 Bcf below the five-year average of 3,311 Bcf.
At 3,082 Bcf, total working gas is within the five-year historical range.
We move one week closer to winter and the deficit to the 5-year average increases by 5 Bcf.
Over the last five weeks the deficit to the 5-year average has increased by 57 Bcf.
There are now just eight weeks remaining before draws from storage begin. The 5-year average builds for the eight weeks totals 420 Bcf. So, assuming we can add that same amount to storage this year, we will begin the winter heating season with 3,502 Bcf in storage. It is estimated that the U.S. needs ~3,800 Bcf in storage to make it thru a normal winter without taping into "base load".
Utilities should now be bringing back online as many coal fired power plants as they can. The problem is that so many of our coal fired plants have been shut down for good that this is no longer the solution to a gas shortage that it use to be.
If LNG exports remain near capacity we will see some regional gas shortages and some very high spot market gas prices. The bidding war between Asia and Europe will push global natural gas prices to levels never seen before.
The propane shortage is MUCH WORSE and a very serious problem.