U.S. gas gross withdrawals hit a monthly record in July, and storage was above its five-year average, while a planned pipeline serving power generation for an unnamed hyperscaler targets service in 2030.
The U.S. Energy Information Administration (EIA) listed the Henry Hub spot price at $2.76 per million British thermal units on Tuesday, Oct. 27. Its latest available storage report, for the week ended Oct. 16, showed 3,644 billion cubic feet (Bcf) of working gas. Stocks were 35 Bcf, or 1%, above the five-year average and 152 Bcf, or 4%, below the year-earlier level.
The July record was for gross withdrawals, which measure gas extracted at the wellhead. The EIA said increased output in the Permian Basin was the main driver. Its October outlook projected dry-gas production of 112.20 Bcf per day in 2026 and 116.13 Bcf per day in 2027. The agency also said Henry Hub averaged $7.72 per MMBtu in January 2026 after winter storm Fern raised heating demand and reduced supply.
Kinder Morgan reported that its affiliate, Natural Gas Pipeline Company of America, had made a final investment decision on Permian Link. The project is designed to carry about 2.8 Bcf per day through roughly 434 miles of pipeline. Kinder Morgan puts the cost at about $4.2 billion, with roughly $1.6 billion attributable to the company. It said the line would serve new power generation for an unnamed A-rated hyperscaler under long-term take-or-pay agreements, with service targeted for the third quarter of 2030 if permits and approvals are secured.
Kinder Morgan reported a $14.4 billion expansion-project backlog at the end of the third quarter, including $13.2 billion in natural-gas projects. The company said projects supporting power generation and local distribution companies represented more than 75% of the total backlog.
The North American Electric Reliability Corporation (NERC) board adopted initial reliability standards for computational loads on Monday, Oct. 26. NERC said the standards cover large loads such as data centers and artificial-intelligence facilities, and that it plans to submit them to the Federal Energy Regulatory Commission (FERC) for U.S. approval. The adoption is an initial step in NERC’s broader plan for large loads.
FERC is separately weighing a draft policy that would stop requesting air-dispersion modeling from applicants for Natural Gas Act projects and stop relying on those models to assess operational air-quality effects under the National Environmental Policy Act. The commission said it would continue evaluating effects with other information. Commissioner Judy W. Chang dissented, arguing that the proposed approach could leave FERC less able to assess local air-quality impacts.
The EIA’s next Short-Term Energy Outlook is scheduled for Nov. 10. Comments on FERC’s draft policy are due Nov. 16.
