Americas: Storage

June 2017

Tighter gas stocks on an annual basis in the US South Central Region (SCR) will continue to be a concern during the summer.

The SCR is home to the Henry Hub pricing point, which is significantly affected by the region’s storage situation. A mild start to the summer in the US has supported gas injection rates in the SCR. However, temperatures in the region are expected to remain close to the five-year average during the rest of the season. This means the SCR will make net gas withdrawals during some weeks of the injection season to meet growing industrial demand in the region, which will be a bullish factor for Henry Hub prices during the summer.

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