EIA Reports Decline In Natural Gas Supplies

The US Energy Information Administration reported on Thursday that domestic supplies of natural gas fell by 59 billion cubic feet for the week ended 3 December.

That compared with the average decline of 55 billion cubic feet forecast by analysts polled by S&P Global Platts. Total stocks now stand at 3.505 trillion cubic feet, down 356 billion cubic feet from a year ago and 90 billion cubic feet below the five-year average, the government said.

Following the data, January natural gas climbed by 1.5 cents, or 0.4%, at $3.83 per million British thermal units. Prices were at $3.808 shortly before the data.

U.S. liquefied natural gas (LNG) export capacity has grown rapidly since the Lower 48 states first began exporting LNG in February 2016. In 2020, the United States became the world’s third-largest LNG exporter, behind Australia and Qatar.

Once the new LNG liquefaction units, called trains, at Sabine Pass and Calcasieu Pass in Louisiana are placed in service by the end of 2022, the United States will have the world’s largest LNG export capacity.