Northeast Pipeline Expansions Boost Gas Production, Ease Winter Storage Fears

摘要

Lingering fears of another polar vortex straining winter gas supplies in 2014-15 seem unfounded, given rapid summer natural gas production growth, below-normal summer temperatures, record storage injections and nearly a dozen pipeline expansions planned before the end of the year. U.S. natural gas storage inventories fell to the lowest level in more than a decade last spring, reaching a low of 822 billion cubic feet in April, but accelerating production growth and a mild summer during what normally is the peak of the cooling season significantly calmed concerns about storage levels in preparation for the upcoming winter market. The United States is on pace to inject the most gas on record into storage over the course of the April though October injection season. U.S. dry natural gas production has reached new highs, above 69.5 billion cubic feet a day, and producers are poised to increase output even more entering this winter and next year as 11 pipeline expansions enter service before January, adding 3.4 Bcf/d of transportation capacity.