Hungry for gas: gas storage sites are ending the heating season with inventories well below last year’s levels, suggesting strong injection demand across the gas summer.
In Europe, strong demand growth through the heating season (over 5%) together with a steep decline in LNG imports (down by ~30%) prompted strong storage draws, increasing by over 55%. this left European storage sites 25 bcm below last year’s levels by the end of March.
In the US, sporadic cold spells, lower gas production and strong growth in LNG exports all supported higher storage withdrawals, which were up by 25% yoy. The Big Freeze in Feb triggered the second largest weekly storage draw (-9.6 bcm). US storage sites ended the winter ~12% below last year’s levels.
In Russia, a cold and long winter, together with a strong recovery in exports, triggered the largest storage draws on record, about 58 bcm, or 85% up yoy. Injection needs through the summer are expected to be about 28 bcm higher yoy.
In China, injection demand will be driven by refilling existing storage sites (~13 bcm) and by Sinopec’s target to add 2.2 bcm of working storage capacity by the end of Sep21.
What is your view? How will injection demand evolve though the gas summer? What will be the impact on prices?
Source: Greg Molnar
See original post by Greg at LinkedIn.