LNG Demand May Keep US Gas Storage Below Historical Norms This Fall

Natural gas production in the US is expected to reach near-record levels this fall, but this may not translate to larger-than-usual storage injections. According to Jodi Shafto of Natural Gas Intelligence, growing demand for liquefied natural gas (LNG) could keep fall builds below historical norms. This would mean that inventories might be shy of 4 Tcf heading into winter.

At a time when summer demand is fading, one would expect storage injections to accelerate. However, the increasing demand for LNG is putting pressure on supplies. Private forecasts are even lower than those of the Energy Information Administration (EIA).