Natural gas demand is projected to scale a new record this winter but sufficient storage, higher production and a slowing economy are likely to weigh on U.S. natural gas prices, the Natural Gas Supply Association (NGSA) said on Thursday.

In its 2023-2024 Winter Outlook, NGSA forecast natgas storage of 3.7 trillion cubic feet (tcf), above last winter’s 3.5 tcf. It sees production rising by less than 1%, which is still a record.

While the trade body projects customer demand to average 121.4 billion cubic feet (bcf)/day, a nearly 3% increase winter-over-winter. This will primarily be lead by the export sector and residential and commercial sector.

“We also continue to see growth in new gas-fired power generation along with 27 gigawatts of new renewable resource capacity expected to come into service and another 10 gigawatts of coal retirements,” said Freeman Shaheen, chairman of NGSA and president of global gas at Chevron.
Source: Reuters (Reporting by Tina Parate in Bengaluru. Editing by Jane Merriman)