U.S. natural gas storage build eased on the week ending July 10, with net weekly injections amounting to 45 billion cubic feet (Bcf), Kallanish Energy reports.
Data from the U.S. Energy Information Administration (EIA) showed that Lower 48 States’ underground storage facilities held 3,178 Bcf of natural gas as of July 10. The overall volume is 26.4% higher than the same period last year and 15.9% higher than the five-year average stock for the period.
However, in terms of storage build, the volume was lower than the five-year average of 63 Bcf and last year’s volume of 67 Bcf, for the same week.
The highest stock increase occurred in facilities in the Midwest, where inventories rose 19 Bcf to 780 Bcf. Storage levels in the East region increased by 15 Bcf in the week to 672 Bcf.
The lowest change, a 2 Bcf build, was seen in the Pacific and South Central storage facilities. The latter holds the largest amount of natural gas stored in the U.S., with volumes reaching 1,228 Bcf.
Analysts surveyed by The Desk had estimated the weekly net injection to be between 38 Bcf and 52 Bcf, with a median estimate of 48 Bcf. Analysts at Energy Aspects had forecast the change to be at 52 Bcf.
Yet, the EIA noted that the average rate of injections into storage is 12% higher than the five-year average so far in the refill season, which runs from April through October.
“If the rate of injections into storage matched the five-year average of 8.7 Bcf/d for the remainder of the refill season, the total inventory would be 4,159 Bcf on October 31, which is 436 Bcf higher than the five-year average of 3,723 Bcf for that time of year,” it said.
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