EIA Natural Gas Storage Report - May 1
Posted: Thu May 01, 2025 2:37 pm
Working gas in storage was 2,041 Bcf as of Friday, April 25, 2025, according to EIA estimates.
This represents a net increase of 107 Bcf from the previous week.
Stocks were 435 Bcf less than last year at this time and 5 Bcf above the five-year average of 2,036 Bcf.
At 2,041 Bcf, total working gas is within the five-year historical range.
In my opinion, the deficit to where storage was last year is more important than comparing it to the 5-year average. Demand for U.S. natural gas is MUCH HIGHER than it was five years ago, and it will continue to increase by at least 3 Bcf per day through 2030. Natural gas prices are going up despite the large storage builds because utilities and LNG exporters need to line up enough gas supply to meet their demand forecasts.
A recent report shows that the U.S. needs to build a lot more storage locations to ensure that the VERY IMPORTANT natural gas supply chain in the U.S. runs smoothly. Numerous AI data centers are building their own natural gas fired power plants since they cannot risk relying on the grid. This is very bullish for SEI.
Trading Economics:
US natural gas futures climbed toward $3.50/MMBtu, nearing three-week highs, driven by a drop in output and record LNG exports, while traders awaited the delayed weekly storage report from the EIA.
> The report is as expected to showed a larger-than-usual storage build of 107 bcf for the week ended April 25, due to mild weather reducing demand. That would surpass both last year’s 64 bcf increase and the five-year average of 58 bcf.
> Storage levels are now back to seasonal norms.
> Supporting prices, production has fallen by 3.5 bcfd over the past four days to a two-month low of 102.0 bcfd. < EQT and other "Gassers" opened the chokes to take advantage of higher gas prices in Q1 than they've seen since 2022.
> Also, LNG exports hit a record average of 16.0 bcfd in April, driven by increased flows to the under-construction Plaquemines facility.
> Looking ahead, meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through May 16.
> Analysts suggest continued mild weather and high output could lead to record injections in May.
Weekly builds will remain over 100 Bcf for a few more weeks. As the summer heat spreads, demand for natural gas for power generation will increase.
This represents a net increase of 107 Bcf from the previous week.
Stocks were 435 Bcf less than last year at this time and 5 Bcf above the five-year average of 2,036 Bcf.
At 2,041 Bcf, total working gas is within the five-year historical range.
In my opinion, the deficit to where storage was last year is more important than comparing it to the 5-year average. Demand for U.S. natural gas is MUCH HIGHER than it was five years ago, and it will continue to increase by at least 3 Bcf per day through 2030. Natural gas prices are going up despite the large storage builds because utilities and LNG exporters need to line up enough gas supply to meet their demand forecasts.
A recent report shows that the U.S. needs to build a lot more storage locations to ensure that the VERY IMPORTANT natural gas supply chain in the U.S. runs smoothly. Numerous AI data centers are building their own natural gas fired power plants since they cannot risk relying on the grid. This is very bullish for SEI.
Trading Economics:
US natural gas futures climbed toward $3.50/MMBtu, nearing three-week highs, driven by a drop in output and record LNG exports, while traders awaited the delayed weekly storage report from the EIA.
> The report is as expected to showed a larger-than-usual storage build of 107 bcf for the week ended April 25, due to mild weather reducing demand. That would surpass both last year’s 64 bcf increase and the five-year average of 58 bcf.
> Storage levels are now back to seasonal norms.
> Supporting prices, production has fallen by 3.5 bcfd over the past four days to a two-month low of 102.0 bcfd. < EQT and other "Gassers" opened the chokes to take advantage of higher gas prices in Q1 than they've seen since 2022.
> Also, LNG exports hit a record average of 16.0 bcfd in April, driven by increased flows to the under-construction Plaquemines facility.
> Looking ahead, meteorologists projected temperatures in the Lower 48 states would remain mostly warmer than normal through May 16.
> Analysts suggest continued mild weather and high output could lead to record injections in May.
Weekly builds will remain over 100 Bcf for a few more weeks. As the summer heat spreads, demand for natural gas for power generation will increase.