Natural gas storage in the US Northeast, which serves as the heart of dry production in the Lower 48, entered the current injection season with volumes towering over normal levels. However, the onset of the coronavirus pandemic in March, followed by pipeline outages and producers voluntarily shutting in some production, has allowed supply and demand fundamentals to balance.
This led to below-average injections late in the summer, with current storage volumes now sitting just above the five-year average. Northeast gas hub prices are strengthening as the injection season winds down and the region faces a withdrawal season riddled with questions.
Brandon Evans and Eric Brooks of S&P Global Platts look at the factors shaping the market.