NGI Predicts Record-Low Injection as Heatwave Drives Gas Demand
The US natural gas market is facing a significant challenge due to the high demand for cooling during the recent heatwave. According to data from NOAA, cooling degree days (CDDs) across the Lower 48 reached 91 CDDs last week, up 14% week/week and 19% more than normal for this time of year.
As a result, NGI is expecting the latest US Energy Information Administration (EIA) storage report to show an injection of 14 Bcf, down 22 Bcf week/week and 5 Bcf less than the same period one year ago. This would also be 15 Bcf lower than the average 29 Bcf build from the previous five years.
The surge in CDDs has driven power generators to increase their natural gas demand, rising 3.4 Bcf/d to 52.3 Bcf/d, according to data from NGI's Entropic Analytics. Deliveries to Lower 48 LNG liquefaction facilities averaged 18.0 Bcf/d, up 0.4 Bcf/d week/week.