RE:RE:FERC Approves Full Operations Restart for Freeport LNG in Te Working natural gas stocks end refill season above five-year average
Working natural gas in storage in the U.S. Lower 48 states as of October 31 totaled 3,776 billion cubic feet (Bcf), according to interpolated data from our Weekly Natural Gas Storage Report (WNGSR) released on November 16. This total represents the second-highest end-of-refill-season inventory during the past five years. Total inventory as of October 31 was 5% (178 Bcf) more than the five-year (2018–22) end-of-October average and 6.8% (239 Bcf) more than last year at this time.
Higher-than-normal inventories at the start of the refill season resulted in less natural gas net injections this refill season compared with previous years. At the start of the 2023 refill season, working gas levels totaled 1,823 Bcf—which is the second-highest level since 2017 and 19% above the five-year average. We estimate that net injections totaled 1,953 Bcf during the 2023 refill season (April 1–October 31), 5% (109 Bcf) less than the five-year average and 9% (203 Bcf) less than last year’s refill season.
Net injections of natural gas into storage decreased from year-ago levels despite increases in U.S. dry natural gas production. U.S. dry natural gas production increased 3% to average 103.8 billion cubic feet per day (Bcf/d) during the 2023 refill season compared with 100.4 Bcf/d during the 2022 refill season, according to data from our Short-Term Energy Outlook(STEO). U.S. natural gas consumption during the 2023 refill season increased by 3% (2.3 Bcf/d) from year-ago levels with electric power sector consumption rising 6% (2.1 Bcf/d), residential and commercial sectors combined consumption falling 2% (0.3 Bcf/d), and industrial demand up nearly 1% (0.2 Bcf/d). Natural gas exports also increased; liquefied natural gas (LNG) exports rose 15% (1.5 Bcf/d), and pipeline exports increased 8% (0.7 Bcf/d).
During most of the early weeks of the refill season, net injections of natural gas into storage exceeded the five-year average, as the storage surplus grew from 298 Bcf on March 31 and peaked at 370 Bcf during the week ending June 30. Following June 30, net injections of natural gas into storage fell short of the five-year average during the next 11 consecutive weeks. The surplus to the five-year average fell as low as 163 Bcf during the week ending October 6, before increasing again during the final weeks of the refill season, as cooler temperatures softened air conditioning demand and, in turn, consumption of natural gas for electric power.
Although the end of the natural gas storage injection season is traditionally defined as October 31, net injections often occur in November.