Natural gas storage inventories will increase 1,477 Bcf during this injection season, the lowest increase in 12 years, the Energy Information Administration said in a report Wednesday.
Still, overall stockpiles will build to a record high of nearly 4 Tcf by November 1, close to the total US demonstrated peak working gas capacity, EIA said.
EIA attributed the below-average increase in storage levels to increased demand from the electric sector and record high storage levels at the end of the 2011-2012 heating season because of warm winter temperatures limiting current injection levels.
Gas burn for electricity totaled 2.6 Tcf from April to June, up 27% from the 2 Tcf burned during the same period last year, EIA said. The low gas price environment was the main reason for the switch.
The amount of working natural gas in underground storage increased 625 Bcf between April and June, its smallest build during that period since 2000, EIA said. While inventory build during that time frame was low, total underground gas storage is at a record high for this time of year, setting a record 3 Tcf for June.
Underground storage capacity is now about 75% full, a level not usually reached in recent years until late August or September, EIA said.
