Raymond James - A tall order to refill Gas Storageborrowed from IV RJ Canadian Energy Midweek Canadian Energy Midweek: A Tall Order to Refill Natural Gas Storage Analysis Now that we are into our fifth week of build season we are paying particular attention to the current level of US Natural Gas Storage, which now stands at 983 Bcf (Exhibit 8a). If we go by what the market, and in particular the forward price curve on natural gas is telling us then we should assume storage levels will reach roughly 3.8 Tcf sometime in early November as we enter draw season (28 weeks away). What this implies, or maybe it is more accurate to say “what this requires”, is an average build rate equal to 14.6 bcf/d (see Exhibit A), or 102 bcf/week from now until early November. Last week’s 82 bcf build (Exhibit 8b) is headed in the right direction, but is still not high enough in our view. We would also emphasize, as outdoor enthusiasts can attest to, it is shoulder season and it is not out of the norm to see weekly natural gas storage builds in the 80–100 bcf in May and June. However, once we reach the dog-days-of-summer and those air conditioners are dialed higher we believe it will be a tall order maintaining the 14.6 bcf/d average “refill rate”. To read the full report, click the link. /uploads/57919/files/rjcem.pdf