NGI Sees Tepid Natural Gas Storage Build Despite Record Heat

Natural gas storage inventories are expected to increase by 34 Bcf for the week ended Sept. 4, according to NGI's price and data analysts. This would follow last week's smaller 30 Bcf injection but trail the 69 Bcf injection reported during the same week last year.

The higher storage injection week/week comes in spite of stronger cooling degree days (CDD), which rose 7% on the week and a substantial 17% higher than the 20-year mean. Despite the rise in CDDs, power burn slipped around 3% week/week, while solar fell around 4%. Wind generation was strong and increased nearly 41% on the week.

The string of paltry storage injections comes amid record heat in July, August, and early September. Weather models point to continued hot weather for the next 10 days before cooler temperatures emerge in late September.