The EIA reported a net gas storage injection of 53 BCF this morning with the week ending August 11th, 2017. This week’s report was above the market’s expectation which was centered around 48 BCF. Storage stands at 3,082 BCF which is 254 BCF below last year at this time and 55 BCF above the five-year average of 3,027 BCF. The natural gas prompt month is currently trading at $2.917 up 2.8 cents from the opening.
We’ve seen a decline in power burns by roughly 2 Bcf/d week over week as weather moderated and gas was injected into storage. There are eleven weeks left in the injection season and many 3rd party forecasts have storage finishing between 3.7-3.8 Tcf. EIA is estimating storage to reach 3.9 Tcf. Will we see the first train #4 cargoes at Sabine pass effect the storage number these last few weeks of August? It’s predicted that these LNG train cargoes will boost pipeline demand by -.5 Bcf/d.