Natural Gas Storage Report - March 21, 2025: U.S. Storage Shows Slight Increase Amidst Mild Weather and Strong Production

The U.S. Energy Information Administration (EIA) has released its weekly Natural Gas Storage Report for the week ending March 21, 2025, revealing a slight uptick in natural gas inventories. According to the report, working gas in underground storage across the Lower 48 states reached 1,744 billion cubic feet (Bcf), a net increase of 37 Bcf from the previous week. However, total storage remains significantly lower than the same week last year, by 557 Bcf, and is also 122 Bcf below the five-year average of 1,866 Bcf.

Despite this increase, natural gas futures prices remain subdued. U.S. natural gas futures have stayed below $3.9/MMBtu, marking a four-week low. This price stagnation can be attributed to a combination of factors, including record-high production levels and mild weather conditions. Weather forecasts predict above-normal temperatures across the Lower 48 states through April 9, 2025, which is likely to curb heating demand and enable further storage builds in the coming weeks.

The regional breakdown shows a mix of gains and losses in storage across the U.S. regions. In the East, storage increased by 3 Bcf, bringing the total to 298 Bcf, still significantly below last year’s 390 Bcf, marking a 23.6% decrease. The Midwest saw a slight increase of 1 Bcf, reaching 367 Bcf, but it was down 30.9% from the 531 Bcf recorded in the same week in 2024. Meanwhile, the Mountain region experienced a decrease of 2 Bcf, ending the week at 163 Bcf. Despite this, storage levels in the Mountain region were still up 50.9% compared to last year’s 108 Bcf. The Pacific region, on the other hand, reported a 1 Bcf decline, ending the week with 192 Bcf, a 13.5% decrease from 2024’s 222 Bcf.

The South Central region, which includes salt and nonsalt storage, saw a net increase of 37 Bcf, bringing its total to 725 Bcf. This region still lags behind last year’s 991 Bcf by 26.8%, but the increase was a positive development. Salt storage increased by 21 Bcf, while nonsalt storage grew by 15 Bcf.

On a national level, the total working gas in storage remains well within the five-year historical range despite being 24.2% lower than last year. This suggests that while inventories are tighter than usual, they are still within the typical bounds of the past five years.

The rise in natural gas production has played a key role in moderating the market. Gas output has averaged 106.0 billion cubic feet per day (bcfd) in March, surpassing the previous monthly record of 105.1 bcfd set in February. This record production has helped to offset some of the supply concerns caused by lower-than-average storage levels. Additionally, U.S. LNG exports have seen a slight uptick, with flows rising to 15.7 bcfd, driven in part by new export capacity at Venture Global’s Plaquemines LNG plant in Louisiana.

Analysts are forecasting that March could see the first net inventory increase for the month since 2012, due to mild weather and strong production. This would be a positive sign for the market as the industry prepares to transition into the spring and summer months. The combination of strong production levels, favorable weather, and increased LNG exports could help balance the market in the near term, even with inventories still trailing historical averages.

In conclusion, the EIA’s Natural Gas Storage Report for the week ending March 21, 2025, indicates that while storage levels are still low compared to last year and the five-year average, the overall trend remains relatively stable. The ongoing increase in production, coupled with mild weather and a slight uptick in LNG exports, should provide some relief to the market. As storage builds continue through April, analysts will be closely monitoring how these factors influence natural gas prices and market dynamics in the coming weeks.