Gas Storage Build Slows Amid Cooling Demand Decline

The natural gas storage build slowed down in the latest week due to reduced cooling demand. The US Energy Information Administration (EIA) reported a 16 Bcf injection for the week ended August 28, following a 31 Bcf build that NGI is modeling. This slower pace falls short of last year's 50 Bcf injection and the five-year average of 37 Bcf. As of August 28, inventories stood at 3,184 Bcf, which is 30 Bcf below year-earlier levels but 167 Bcf above the five-year average.

Cooling degree days (CDD) dropped by more than 14% from the prior week to 72 last week. However, this level was still 6% above the prior 20-year mean and reflects August's relentless heat. NGI's Entropic Analytics shows dry gas production averaging close to 112 Bcf/d during the EIA reference period, which was nearly flat week/week.