Several US regions face hurdles in race to build summer gas stocks

With the withdrawal season officially over, US gas storage fields stand at their second-lowest level in 16 years. Several regions face obstacles as they look to climb out of deep deficits and re-stock before the next heating season begins. In particular, grid constraints on moving Permian gas, along with a new major export route to Mexico to be commissioned in April and incremental demand from LNG terminals, will make Texas and the Southeast a focal point this summer. Total US storage inventories tumbled to a low of 1.11 Tcf this year before the first net injection occurred during the last week of March. Outside of winter 2013/14, which featured the frigid polar vortex, the injection season has not started at a lower level since 2003, according to data from the US Energy Information Administration. Despite starting the season at one of the lowest levels seen in the 21st century, a forecast by S&P Global Platts Analytics projects US inventories reaching volumes on par with 2018 by the end of October. The month is expected to end at 3.25 Tcf, 12% below the five-year average. The current deficit is 31% behind the five-year average. The forecast represents additions of 2.126 Tcf… continue reading

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Source: CTRM Center

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