The amount of natural gas in Michigan storage facilities at the end of October, the traditional end of the injection season, is expected to be about 18.47% less than was expected to be storage at the same point a year ago, figures from the state Public Service Commission show.
The PSC said Friday it estimates there will be 499.4 Bcf in Michigan storage facilities at the end of October and estimates there will be 392 Bcf in storage at the end of December.
PSC records show the regulator projected there would be 612.5 Bcf in storage in October 2013 and expected 409.1 Bcf would be in storage at the end of December 2013. Actual figures for the 2013 months were not immediately available from the PSC.
Michigan, with its mixed economy, is considered by some to be a bellwether state for northern tier state economies.
In its latest forecast for the summer of 2014, the PSC said higher demand across all segments of the state's economy is expected to raise total annual natural gas sales in Michigan in 2014 to 859.9 Bcf, a 9.7% increase over 2013.
"Assuming a return to normal weather this summer, demand in the electric power sector is expected to increase as a result of higher demand for air conditioning," the PSC said. Much of that demand will be met by greater use of natural gas by generators.
That increase in demand may push gas prices higher, which could discourage injections of gas into storage.
Demand for power and gas dipped in summer 2013 due to cooler-than-normal weather.
Michigan obtains close to 20% of its gas needs from substantial but declining instate production wells, the PSC said. This production is projected to decline by 4.3% year on year to 116.7 Bcf in 2014.
Net interstate deliveries are projected to increase 39.2% to 726.2 Bcf in 2014, the PSC said.
