RE:NGI - Storage Difference Y/Y & Y/5yr both are down = BullishGot this from PNE letter to shareholders it may also be on the presentation
The one constant in the natural gas business is the discussion on storage levels and the impact those levels will have on natural gas prices. Often this discussion is led with a weather forecast, but now this discussion often involves supply and demand charts(1). Natural gas prices tend to reflect the market view of whether summer storage injections will adequately restore gas levels in time for the next winter season. As a North American natural gas producer, Pine Cliff historically was only interested in the Canadian and US storage levels, but with the impressive growth in LNG exports over the past few years(2), the European natural gas storage has also become an important indicator of whether US LNG exports will maintain their pace and continue to remove natural gas from the North American supply calculation(3). The charts below, created by Desjardins Capital Markets, show that all three of the US, Europe and Canada markets now have natural gas storage levels below their five year averages, despite all three of these markets starting the 2020/21 withdrawal winter season at near capacity storage levels.