NGI’s Hub & Flow Mind the Gap: Widening Natural Gas Storage Deficits Create Urgent Summer Challenge
5 snips
Mar 3, 2025 A harsh winter has flipped natural gas inventories from surplus to deficit, creating challenges for the upcoming summer. Producers are exercising caution despite higher prices, complicating the ability to rebuild stocks. Fluctuations in LNG demand and weather forecasts further complicate storage strategies. Regional differences in gas supply levels add to the complexity, with surpluses in some areas and deficits in others. The podcast also highlights the impact of drought conditions on energy supplies, stressing the importance of staying informed.
AI Snips
Chapters
Transcript
Episode notes
Storage Deficit
- The U.S. began winter with almost 4,000 BCF of natural gas storage and has withdrawn over 2,000 BCF.
- Current storage sits at 1,800 BCF, a 238 BCF deficit compared to the five-year average.
Producer Restraint
- Natural gas producers like EQT and Comstock are restraining output growth despite high prices.
- Substantial production growth is expected in 2026, not sooner, due to pipeline timing.
Cautious Producers
- Producers are cautious about increasing output due to past experiences with warm winters and fluctuating LNG exports affecting prices.
- EQT anticipates a timing mismatch; increased drilling now won't significantly impact output until mid-2026 when new Permian pipelines come online.