The US supplies adequate natural gas in market in the winter of 2013-14.

 

According to the professional staff assessment, the natural gas price in the US is reasonable and the storage is enough. And the production is increased rate.

 

Weather is always an important factor to decide the gas demand and price. The NOAA forecasts that the eastern US is in large proportion in the gas consuming in normal winter. The FERC staff expects the demand for residential and commercial gas can reach the consumption  of the last year.

 

However, the forecast of NOAA is uncertain with the actual condition since its earlier expectation of an El Nino event this winter on the way. There is a high chance that the E1 Nino event would affect the weather this winter.

 

The ICE futures data shows that the gas price across the US would be rise up 40-50% but it is remaining below the high record. The FERC staff looks forward to the price to be stable in this winter, except there is a peak in New England even though the temperature fall.

 

According to the FERC staff words, current production and storage levels can be catered to meet the residents demand in heating in all regions.

 

There is lower than 1% growth of total US natural gas supply, including the natural gas production, LNG and Canadian imports. But the natural gas has 4% decline in storage.

 

The US gas production has rise up 1.6% due to the shale gas production in the Northeast. There is 7% drop of gas imports from Canada, and 40% drop in LNG imports because the rising domestic production this year.

 

The US natural gas storage inventories can be oversupply for a normal winter even though there is a decline compared to that of last year. The mild summer is the reason resulting to the storage.

 

In New England, due to the closer and cheaper price of Marcellus shale gas, it has replaced the natural gas which is via pipelines from the Southern, the Midcontinent, and Canada.

 

New England's supplies from those areas have dropped from about 12 bcfd in 2008 to less than 6 bcfd in 2013, while Northeast production has increased from 2 bcfd to more than 11 bcfd, the report said.

 

The imports of LNG can be low this winter as gas price can not remain to the high levels.