US gas prices more than doubled after EU embargo on Russian gas
A gas rig in a shale field in Pennsylvania – Photo: AP
According to the newspaper Financial Timeson 4-5 May, the gas price of the Henry Hub Natural Gas Distribution Center in Erath Township, Louisiana (USA) – owned by Sabine Pipeline LLC – reached $8,415/1 million Btu (Btu is a single unit). British thermal flavor, commonly used in America).
The sale price is more than double what it was at the beginning of 2022, and much higher than the $3 average 10 years ago.
Liquefied natural gas (LNG) producers have increased their demand for shale gas to export abroad. These facilities have been operating at full capacity since the war in Ukraine began.
Since the beginning of March, production from LNG plants has averaged more than 350 million m3/day (equivalent to 127 billion m3/five). The above amount is about 17% more than in 2021 and is close to the consumption of the American people.
More LNG shipments are expected in 2022, as Cheniere Energy expands an export plant in Louisiana and rival Venture Global opens one in the state.
Gas is still much cheaper in the US than in Europe, where it was around $37 per million Btu this week, or in Asia, where it was $23.5. The disparity creates an incentive to add more factories to export.
U.S. energy infrastructure companies, NextDecade and Energy Transfer, this week announced long-term gas sales contracts for two projects in Texas and Louisiana.
The US and the EU recently signed an agreement by 2030, in which the US will ship an additional 50 billion cubic meters each year.3 LNG to Europe, nearly 50% more than the current export capacity of the US.
Domestic demand for LNG is also increasing as US electricity consumption is on the rise again. Combined with sluggish production growth from shale gas fields, US gas inventories are at a seasonal low in three years and well below the five-year average.
“Low inventories and high exports due to the hostilities in Ukraine, causing prices to go up is understandable,” said Andrew Gillick, energy strategist at Enverus, a consulting firm.
As LNG prices rise, producers and consumers in the US are feeling the pinch. Because they are buying LNG at Henry Hub for 3.50 USD/1 million Btu. Now have to buy more than double the price.
Paul Cicio, president of the American Association of Industrial Energy Consumers, criticized the country’s LNG exports. Fertilizer, paper, cement and glass producers are the ones most affected by the increase in LNG prices, he said.
Some Democratic politicians have also urged a review of US gas sales abroad. In February, a group of senators wrote to US Energy Secretary Jennifer Granholm, urging her to take “swift action to limit US natural gas exports”.
“We understand that there are geopolitical, global and regional market factors to consider. However, the administration must also consider the potential increase in costs to American families due to export volume. higher,” the senators wrote.
at Blogtuan.info – Source: tuoitre.vn – Read the original article here
