US Gas Analysts Forecast 99 Bcf Injection, Surplus Nears Zero by 2025
US natural gas storage injections for the week ending May 29 are projected at 99 Bcf, significantly reducing the surplus to 2025 levels. The report from the EIA, scheduled for June 4, indicates a narrowing surplus, with implications for gas prices amid rising LNG demand.
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The US Energy Information Administration (EIA) is anticipated to report a weekly net injection of 99 billion cubic feet (Bcf) for the week ending May 29, which would raise total inventories to 2.582 trillion cubic feet. This injection would reduce the surplus to the five-year average to 142 Bcf, representing 6%, while the surplus to 2025 levels would diminish to just 1 Bcf.
Total gas supply has averaged 113.4 Bcf/d since April 1, surpassing last year's levels by 2.2 Bcf/d, but net flows from Canada have decreased. The ramp-up of the Golden Pass LNG terminal may lead to further growth in demand, while the expected injections next week are projected between 109-111 Bcf, aligning closely with the year-ago figures. The declining surplus could stabilize gas prices as demand from LNG export terminals continues to rise.
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