NGI Sees Continued Heat Slowing Natural Gas Storage Injections

Natural gas storage inventories are expected to increase by 34 Bcf for the week ended September 4, according to NGI's projections. This would follow last week's smaller 30 Bcf injection but trail the 69 Bcf injection reported during the same week last year and the five-year average increase of 52 Bcf.

The higher storage injection comes despite stronger cooling degree days (CDD), which hit 76 last week, a 7% increase on the week and 17% higher than the 20-year mean. However, power burn slipped around 3% week/week, while solar fell around 4%, according to the EIA.

Weather models point to continued hot weather for the next 10 days before cooler temperatures emerge in late September, paving the way for stronger injections in the final stretch of the traditional injection season. End-of-season estimates have slipped to the 3.8 Tcf range from 3.9-plus Tcf.