US Gas Stockpiles Soar to Highest Pre-Winter Level Since 2016

US natural gas inventories are set to reach their highest level since 2016 ahead of winter, according to the Energy Information Administration. The EIA expects stockpiles to rise to approximately 3,985 billion cubic feet in October, providing a significant buffer against potential winter demand.

The strong production and lower liquefied natural gas (LNG) export demand are key factors driving this increase. LNG exports are forecast to average 16.5 billion cubic feet per day in the third quarter of 2026, with maintenance at Freeport LNG slightly lowering this projection. However, US LNG exports are still expected to continue growing through 2027.

Natural gas production is also expected to remain strong, while demand from the power sector will increase as electricity consumption rises. The EIA expects natural gas to account for about 40% of US electricity generation in 2026, with coal's share falling to 16%. Wind and solar are forecast to make up 11% and 8%, respectively.

The higher production and maintenance at LNG export facilities are expected to weigh on domestic gas demand and prices. As a result, Henry Hub natural gas prices are predicted to average $2.87 per million British thermal units in the third quarter of 2026, down 50 cents from the EIA's previous forecast.