Weekly Natural Gas Report -- 11/30/2012

November 30, 2012 04:24 AM

The NYMEX January '13 contract moves to the front month position -- falling over the report week, from $3.903 on Wednesday, 11/21 to $3.696 on the following Wednesday,11/28.

Henry Hub spot price rose 11 cents from $3.59 on Wednesday, 11/21, to $3.70 on Wednesday, 11/28.

Demand/Consumption --

Natural gas domestic consumption rose by 8.7% this week, according to data from Bentek. This increase was driven by a 22.2% rise in residential and commercial consumption for heating. Consumption of natural gas for electric power generation fell by 4.9%, and industrial consumption rose 1.9%.

Supply --

Supply rose by 0.3% this week, as increases in production offset declines in pipeline imports from Canada. Natural gas production rose 0.5%, according to Bentek data, while imports from Canada fell by 1.2%. Declines in imports in the West and Midwest regions offset an increase in imports to the Northeast, which were likely used to meet the week's weather-related demand.

Storage --

Working natural gas in storage increased to 3,877 Bcf as of Friday, November 23, according to EIA. This represents an implied net injection of 4 Bcf from the previous week. This week's injection was 22 Bcf above the 5-year (2007-2011) average net withdrawal of 18 Bcf, and 2 Bcf above last year's injection of 2 Bcf. Inventories are currently 26 Bcf (0.7%) greater than last year at this time and 190 Bcf (5.2%) greater than the 5-year average.

Two of the three storage regions posted increases this week. Inventories in the West and Producing regions increased by 4 Bcf (compared to the 5-year average net withdrawal of 3 Bcf) and 12 Bcf (the 5-year average net injection of 5 Bcf), respectively, while the East region posted a decline of 12 Bcf (the 5-year average net withdrawal of 19 Bcf).

In the Producing region, working natural gas inventories increased 6 Bcf (1.9 percent) in salt cavern facilities and rose 6 Bcf (0.6 percent) in nonsalt cavern facilities.

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