Autumn Weather Boosts US Natural Gas Storage Prospects

As autumn weather arrives in the Lower 48, natural gas storage deficits are poised to shrink. According to NGI's calculations from NOAA data, total cooling degree days (CDDs) fell to 43 from 58 last week, a significant decrease from earlier this month.

Last week marked not only the start of autumn but also a return to more autumn-like weather in the Lower 48. The US Energy Information Administration (EIA) Weekly Natural Gas Storage Report for the week ended September 25 is expected to show an injection of 63 Bcf, up 10 Bcf from last week.

NGI's Entropic Analytics data show natural gas deliveries to Lower 48 power generators and LNG liquefaction plants each fell 0.3 Bcf/d week/week, while shipments to Mexico declined by 0.1 Bcf/d. Industrial demand nudged 0.2 Bcf/d higher to 21.5 Bcf/d.

The overall reduction in supply helped send NGI's Weekly Henry Hub index up 8.0 cents to $3.025 last week, the first time that index has broken the $3 level since July 13.