North America gas weekly update: South Central storage flips back to withdrawals
Last week’s colder-than-normal weather is set to increase L48 gas storage withdrawals week-over-week. However, coinciding with this yesterday’s arrival of astronomical spring, storage withdrawals will then seasonally taper off through the end of the month. The week ending 31 March is set to exit withdrawal season at above 1.8 Tcf, a 285 Bcf surplus versus the five-year average. As Henry Hub gas prices spiral downwards North American gas markets once again ask: • Will US gas operators need to further reduce production plans? • Will Freeport LNG start displaying steady, full utilization soon? • How will spring weather impact balances?