U.S. Natural Gas Storage Declines by 80 Bcf in Latest EIA Report

The U.S. Energy Information Administration (EIA) released its weekly Natural Gas Storage Report for the week ending February 28, 2025, showing a decline in working gas storage across the Lower 48 states. The total working gas in underground storage decreased by 80 billion cubic feet (Bcf), bringing the total to 1,760 Bcf. This represents a 585 Bcf decrease compared to the same time last year and is 224 Bcf below the five-year average of 1,984 Bcf. While storage levels remain within the five-year historical range, the drop in inventories indicates potential tightening in the natural gas market.

Regional data showed that the storage reductions were not uniform across all areas. In the East region, storage dropped by 22 Bcf, bringing the total to 340 Bcf. This is a 21.1% decrease compared to the 431 Bcf recorded at the same time last year and a 16% drop compared to the five-year average of 405 Bcf. The decrease in the East region reflects ongoing tightness in this key area, which typically experiences higher heating demand in the winter months.

In the Midwest, the storage decline was more pronounced, with a decrease of 28 Bcf, bringing the region’s total storage to 396 Bcf. This marks a 32% decrease compared to last year’s 582 Bcf and a 21.1% drop relative to the five-year average of 502 Bcf. The Midwest’s rapid drawdown of storage suggests that heating demand may have exceeded expectations in this region, further tightening supply.

The Mountain region experienced only a small decrease of 2 Bcf, bringing the total storage to 166 Bcf. This region is more stable compared to others, with a year-over-year reduction of just 1.8% and a 44.3% increase over the five-year average of 115 Bcf. The relative stability in the Mountain region provides some balance to the broader decline in natural gas storage.

The Pacific region saw a modest increase in storage, rising by 1 Bcf to 199 Bcf. However, this increase was not enough to offset the year-over-year decline of 8.7%, and the region remains 13.7% above its five-year average of 175 Bcf. While the increase in the Pacific region may offer some reassurance, it is still clear that the overall natural gas supply is under pressure in many parts of the country.

The South Central region, which includes both salt cavern and nonsalt storage, experienced the largest decrease in storage, dropping by 30 Bcf to 658 Bcf. This is 30.4% lower than the 945 Bcf recorded at the same time last year and 16.3% lower than the five-year average of 786 Bcf. The salt cavern storage saw a particularly sharp decline, falling by 9 Bcf, a 46.8% decrease from last year’s levels. This drop in the South Central region signals a tightening of supply in one of the most important natural gas storage areas in the U.S.

Nationally, the total decrease of 80 Bcf brings the working gas storage level to 1,760 Bcf, representing a 24.9% decrease from the previous week and an 11.3% decline compared to the five-year average. These lower-than-expected storage levels are indicative of a potentially tighter market, especially as the U.S. enters the final stretch of the winter season. With high heating demand typically persisting through early spring, the market is likely to keep a close eye on whether storage levels can rebound or if further withdrawals will lead to higher natural gas prices.

Market expectations were largely aligned with the storage report’s findings, with analysts predicting a modest decline in storage levels. However, the extent of the drop, especially compared to historical averages, has sparked concerns about the potential for tighter supply heading into the next few weeks. The natural gas market is currently navigating a complex balance between production levels, seasonal demand, and storage inventories. The February 28 data underscores the fact that natural gas supply may be tighter than initially expected, which could put upward pressure on prices, especially as weather patterns continue to be a key driver of demand.

As traders and market participants digest the latest storage data, attention will shift to the next report, scheduled for March 13, 2025. Expectations will continue to hinge on whether warmer weather or an increase in natural gas production can help mitigate the ongoing storage deficit. Given the tightness seen in key storage regions, any further reductions in stockpiles could signal an even more volatile market, with potential implications for both natural gas prices and supply security across the country.