US Weekly Energy Report - 8 June 2017



Market Commentary

The U.S. Energy Information Administration (EIA) reported on Thursday a natural gas storage injection of 106 Bcf for the week ending June 2. After failing to add more than 82 Bcf for any week during last year’s injection season, the triple-digit gain marks the largest weekly storage build since September of 2015. At 2,631 Bcf, total storage inventories are currently 237 Bcf ahead of the five-year average and 332 Bcf behind year-ago levels.

Late last week, the Federal Energy Regulatory Commission (FERC) granted Cheniere Energy approval to begin introducing feed gas and refrigerants to a fourth processing unit, or “train”, at the Sabine Pass liquefied natural gas (LNG) export terminal. This is the final milestone before bringing a liquefaction facility into commercial operation and the fourth train is likely to be completed during the fourth quarter of 2017, expanding total export capacity at Sabine Pass.

Despite the decision by President Donald Trump last week to pull the U.S. from the Paris climate accord, several states, cities, and businesses have pledged an ongoing effort to curb carbon emissions. Those actions could result in new limits on energy-industry drilling practices and methane emission from oil and gas operations, as well as stricter fuel economy standards for cars and heavy duty vehicles.

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