Southeast storage at record levels; strong demand needed to offset impending surplus

摘要

Total Southeast working gas inventories rose to an estimated 513 Bcf, according Platts Bentek on May 18. This represents a roughly 180-Bcf build over the five-year average and a 170-Bcf build over last year and is the result of increased inter-regional flows offsetting a fall in Southeast production. High storage levels have been particularly prevalent in the salt dome storage facilities, which act as a shock absorber for gas market imbalances. Salt inventories filled at a rate of about 1.3 Bcf/d since March 10, reaching 368 Bcf as of the May 12 US Energy Information Administration’s weekly storage report. That amount is 131 Bcf above 2015 levels.