Even though the U.S. is producing near record amounts of natural gas today, world events are driving great volatility in the natural gas markets. International demand for U.S. natural gas is soaring, driving up prices and threatening supply.
To ship natural gas across oceans, it must first be converted to liquified natural gas (LNG) and shipped via tanker. The process is capital intensive and new facilities are being built in the U.S. to respond to anticipated market opportunity.
The Industrial Energy Consumers of America (IECA) has called for a “consumer safety valve” to protect domestic customers from the market power of LNG country buyers, citing a recent spike in Australian natural gas prices. The IECA notes that U.S. natural gas prices in April more than doubled from a year earlier. Register for the OMA Energy Committee meeting on Wednesday, May 11 for more on this topic. 5/5/2022