U.S. Natural Gas Inventories at Eight Year High Heading Into Winter 2024-25: EIA

Natural gas storage sites across the Lower 48 states ended the natural gas injection season with 3,922 billion cubic feet (Bcf), according to an Dec. 2 report published by the U.S. Energy Information Administration. U.S. natural gas inventories are starting the winter 2024-25 season with the most natural gas since 2016.

As it stands, U.S. gas inventories are six percent above the previous five-year average (2019-23), despite injections into storage being below average throughout the entire injection season which runs from April to October. Lower natural gas volumes were injected nearly every week during the injection season this year than the previous five-year average, due to storage sites starting the injection season at relatively high capacity. The U.S. ended the winter 2023-24 season with 2,282 Bcf of gas in storage sites, up 25 percent compared to the same period during 2023 and 40 percent above the five-year average for March.

The high storage capacity during the end of winter 2023-24 compared to other winters can be attributed to mild weather, reduced consumption and robust natural gas production. According to the National Oceanic and Atmospheric Administration (NOAA) the U.S. experienced its warmest winter on record. Higher temperatures have led to lower gas demand for household consumption and therefore lower demand overall. Moreover, both the commercial and residential sectors used less gas than previous winters and as a result less gas was used from storage sites to fulfil demand.

Net injections into gas storage during the injection season totalled 1,640 Bcf, down 21 percent compared to the previous five-year average. Storage operators injected less gas into storage sites due to already full sites requiring lower levels of injections to meet storage targets and curtailed U.S. production due to low natural gas prices, reducing the availability of gas for injections.

The agency forecast natural gas withdrawals during winter 2024-25 to total 1,957 Bcf, and projects U.S. gas inventories to be six percent above the five year (2020-24) average by the end of March 2025.