US Natural Gas Prices Rise on Smaller Storage Build and Stronger Demand Forecasts
Natural gas prices rose by 0.47% to ₹279.2 as data from the US Energy Information Administration showed a smaller-than-expected storage build. The addition of 44 billion cubic feet of gas to storage for the week ended September 11 was below market expectations of a 49 bcf build.
The five-year average build is 74 bcf, and this year's increase is significantly lower than last year's 87 bcf. Despite supportive storage data, US Lower 48 gas production remained strong, averaging 113.1 bcfd in September, up from the monthly record of 112.2 bcfd in August.
Record production and mild weather have kept inventories above the five-year average since March. LSEG expects a decline in demand, averaging 106.6 bcfd next week compared to 109.6 bcfd this week. However, natural gas flows to the nine major US LNG export plants increased to 18.2 bcfd in September from 17.2 bcfd in August.
The EIA projects a rise in US dry gas production, reaching 116.0 bcfd in 2027. Domestic consumption is forecast at 94.8 bcfd in 2027, while LNG exports are expected to increase to 18.6 bcfd by the same year.