Total supply rose by 1.3 percent over the report week. Dry production rose by 1.6 percent, and was partially offset by declines in Canadian imports to the West and Northeast. Liquefied natural gas (LNG) sendout rose 13.3 percent, averaging 224 million cubic feet per day. Despite the week-over-week increase, LNG sendout is at a historically low level, and close to 44 percent below sendout for the same week last year.
At the NYMEX, the price of the near-month contract (October 2012) fell about 30 cents, from $3.063 per MMBtu last Wednesday to $2.762 per MMBtu yesterday. The 12-month strip (the average of the 12 contracts between October 2012 and September 2013) declined to $3.353 per MMBtu from $3.510 per MMBtu last week.
Working natural gas in storage increased to 3,496 Bcf as of Friday, September 14, according to EIA’s WNGSR. This represents an implied net injection of 67 Bcf from the previous week. This week’s injection was 6 Bcf below the 5-year (2007-2011) average injection of 73 Bcf, and 22 Bcf below last year’s injection of 89 Bcf. Inventories are currently 320 Bcf (10.1 percent) greater than last year at this time and 278 Bcf (8.6 percent) greater than the 5-year average.
All three storage regions posted increases this week. Inventories in the East, West, and Producing Regions increased by 44 Bcf (the 5-year average net injection is 48 Bcf), 3 Bcf (the 5-year average net injection of 8 Bcf), and 20 Bcf (the 5-year average net injection of 17 Bcf), respectively. In the Producing Region, working natural gas inventories increased 10 Bcf (4.8 percent) in salt cavern facilities and increased 10 Bcf (1.1 percent) in nonsalt cavern facilities.
Temperatures during the storage report week were 0.3 degrees warmer than the 30-year normal temperature and 0.9 degrees cooler than the same period last year. Temperatures in the lower 48 States averaged 69.4 degrees, compared to 70.3 last year and the 30-year normal of 69.1 degrees. While overall temperatures were a little warmer than normal, temperatures varied somewhat across Census divisions. The Pacific Census division in the West was particularly warm, averaging 3.6 degrees warmer than the 30-year normal. Temperatures in both the East North Central and East South Central Census divisions were cooler than the 30-year normal by a degree.