trending Market Intelligence /marketintelligence/en/news-insights/trending/z6agt2r8b2pmwrzwvoscka2 content esgSubNav
In This List

Cold weather supports higher natural gas demand in 2nd week of March

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Cold weather supports higher natural gas demand in 2nd week of March

Colder weather bolstered natural gas consumption across all end-use demand sectors in the U.S. during the week ended March 14, while rising imports drove up overall supply, the U.S. Energy Information Administration said in its latest "Natural Gas Weekly Update" released March 15.

Total U.S. gas consumption was up 5% week on week, from 76.6 Bcf/d to 80.8 Bcf/d, with colder conditions observed in several portions of the contiguous U.S.

Power burn logged a 4% increase relative to the prior-week level as it rose from 22.6 Bcf/d to 23.5 Bcf/d, while industrial-sector consumption posted a 2% uptick over the same period as it climbed from 22.0 Bcf/d to 22.4 Bcf/d. Demand in the residential/commercial sector, where natural gas use for space heating is common, grew 9% week over week, from 32.0 Bcf/d to 35.0 Bcf/d.

By contrast, natural gas exports to Mexico were reportedly 1% lower compared the week earlier at an average at 4.2 Bcf/d. LNG exports declined from 3.4 Bcf/d in the prior week to 3.1 Bcf/d in the current report period.

Four vessels carrying a combined 14.8 Bcf of LNG left the Sabine Pass liquefaction facility from March 8 to March 14 and two tankers with a combined LNG-carrying capacity of 7.5 Bcf were seen loading at the terminal on March 14. Meanwhile, Dominion Energy Inc.'s Cove Point facility loaded its first cargo on March 1 that was headed to the United Kingdom after being redirected in the middle of the Atlantic en route to South America or the Cape of Good Hope, with a second vessel expected to arrive at the terminal on April 9, according to the EIA.

Overall U.S. gas supply reflected a 1% gain week on week, widening from 84.8 Bcf/d to 85.6 Bcf/d. Dry production was almost flat over the same period as the average was spotted at 78.3 Bcf/d last week and 78.4 Bcf/d in the current report period, while net imports from Canada notched a 13% increase from the week-ago figure as the average rose from 6.2 Bcf/d to 7.0 Bcf/d.

In terms of inventories, the EIA detailed a 93-Bcf withdrawal in its latest storage data for the week ended March 9, which compared to the 97-Bcf five-year-average pull and a 55-Bcf year-ago drawdown. Working natural gas in storage currently sits at 1,532 Bcf, or 718 Bcf below the year-ago level and 296 Bcf below the five-year average of 1,828 Bcf.

Storage deficits have rebounded since Jan. 19, when inventories were 59 Bcf lower than the five-year minimum range and 486 Bcf lower than the five-year average, according to the EIA.

Assuming storage draws match the five-year average for the remainder of the withdrawal season, the EIA sees working gas stocks reaching 1,406 Bcf on March 31, which is 17% lower than the five-year average.