Total U.S. natural gas demand deflated amid reduced consumption across most sectors during the week ended Nov. 29, while overall supply rose on the back of increased production, the U.S. Energy Information Administration said in its latest "Natural Gas Weekly Update" released Nov. 30.
Natural gas consumption in the U.S. was down 6% week on week, from 71.2 Bcf/d to 67.0 Bcf/d. Power burn logged a 5% decline versus the prior-week level as it fell from 22.0 Bcf/d to 20.8 Bcf/d, while industrial-sector demand notched a 1% slump on the week as it slipped from 21.6 Bcf/d to 21.4 Bcf/d, and residential/commercial-sector consumption posted a 10% decrease over the same period as it tightened from 27.6 Bcf/d to 24.8 Bcf/d amid warmer weather across the country.
Natural gas exports to Mexico were 1% lower week over week as it averaged at 4.5 Bcf/d. Natural gas pipeline flows to the Sabine Pass liquefaction terminal during the week in review averaged 3.0 Bcf/d, with four vessels carrying a combined 14.9 Bcf of LNG seen to have departed the terminal from Nov. 23 to Nov. 29 and two tankers with LNG-carrying capacity of 7.1 Bcf seen loading at the terminal Nov. 29.
According to the EIA, LNG exports are poised to reach a new record in November, with 23 cargoes loaded, equivalent to an estimated 81 Bcf of LNG exports. This exceeds the prior record of 22 loaded cargoes in October.
U.S. natural gas supply rose from 81.2 Bcf/d in the previous week to 81.9 Bcf/d in the current review period, reflecting a 1% gain week on week. Dry production climbed by 1% relative to the week-ago figure as it grew from 75.8 Bcf/d to 76.7 Bcf/d, while net imports from Canada deflated by 1% over the same period, sliding from 5.2 Bcf/d to 5.1 Bcf/d.
In terms of inventories, the latest storage data from the EIA outlined a net 33-Bcf withdrawal for the week ended Nov. 24 that left total working gas stocks at 3,693 Bcf, or 309 Bcf below the year-ago level and 107 Bcf below the five-year average of 3,800 Bcf.
Milder weather that drove down demand for natural gas, primarily in the residential/commercial and electric-power sectors, is seen to have allowed for the reported pull from stocks that was below both the 43-Bcf year-ago draw and the 47-Bcf five-year average withdrawal.
