LNG Demand May Cap Fall Natural Gas Storage Builds

Natural gas storage injections in the US are expected to accelerate this fall due to near-record production levels. However, growing demand for liquefied natural gas (LNG) could keep builds below historical norms and leave inventories shy of 4 trillion cubic feet heading into winter.

According to industry experts, high output from domestic wells should normally allow storage injections to pick up pace as summer demand fades. But with LNG exports on the rise, particularly from terminals like Corpus Christi LNG and Golden Pass LNG, the market may not see the usual surge in storage builds.

Private forecasts are also falling below those of the Energy Information Administration (EIA), which typically provides a benchmark for industry expectations. This divergence highlights the complexities of forecasting natural gas markets, where multiple factors such as weather, demand, and production levels all play a role.