CALGARY - Natural gas storage facilities across North America have reached record high inventories, leading some to turn away customers and raising the threat of a late summer price collapse.
The early start to injection season will have serious implications for U.S. natural gas working capacity, which will be tested in the coming months, said oil and gas analysts Bentek Energy. "Assuming natural gas injections mimic last summer, the trajectory would imply inventories of 4,698 Bcf by November, which is 220 Bcf higher than total U.S. design capacity," Bentek said in a report this week.
"The current high storage levels will intensify downward price pressure throughout the U.S. this fall and likely force additional production shut-ins if stronger demand does not materialize this summer."
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