Cold snap leads to massive gas draw-down

In mid-January 2025, the United States experienced an unusually cold snap that drastically increased demand for natural gas. With temperatures plunging to record lows in the Southeast, including snow in areas like Louisiana and Texas, natural gas consumption spiked as people turned up the heat to combat the chill.

The surge in demand led to a significant withdrawal from storage. According to the Weekly Natural Gas Storage Report (WNGSR), during the week ending January 24, U.S. natural gas inventories dropped by 321 billion cubic feet (Bcf), marking the fourth-largest weekly withdrawal in history. This was nearly 70% higher than the average for the same week over the past five years.

The cold spell hit regions like the South-Central U.S. hardest, where natural gas stocks fell by 136 Bcf, while the East and Midwest also saw declines of 10% and 11% respectively. These areas, where winter heating demand is highest, were particularly impacted as heating degree days soared 28% above normal, according to NOAA.

In addition to the demand-driven withdrawals, production also slowed slightly due to freeze-offs, which occur when liquids freeze in the gathering lines, affecting output.

By the end of January, U.S. natural gas inventories were 4% below the five-year average, a stark contrast to being 6% above average when the heating season began in November. The WNGSR highlights these trends, with data available on the Natural Gas Storage Dashboard, which tracks natural gas inventories, consumption, prices, and storage capacity. The cold weather had a major impact on both supply and demand, reshaping the natural gas landscape for the remainder of the winter.