Natural Gas Price Rebounds After Explosion at LNG Export Facility In Texas
- 13-Jun-2022 3:03 PM
- Journalist: Jacob Kutchner
Houston, Texas- Fueled by bursts in energy costs, including Natural Gas, U.S. inflation spiked in June, with market tightness. An explosion on 7th June at the Freeport LNG export terminal left market members pondering potential supply disruption.
Freeport LNG becomes a turnaround for at least three weeks. The closure comes when global interest in LNG is high because numerous countries attempt to wean themselves off Russian gas, which is sent into Europe principally through pipelines.
As of 8th June, the spot costs of Natural Gas in the US rose with elevation in Henry Hub price with the pattern of USD 9.46/MMBtu. Costs across the South increased as higher temperatures increased the demand for air conditioning. Natural gas utilization in the electric power area along the Texas Gulf Coast and across the Southeast district rose by 7% with the week ending on 10th June.
Alongside Natural Gas, Liquefied Natural Gas (LNG) costs likewise flooded, and the consumers in Europe are likely to feel the impact. However, in Europe, costs slide down with more than adequate LNG supplies to extinguish supply stresses. The prices are still on the higher end, and the cost pattern's elevation was seen as merchants trying to refill their reserves ahead of the following heating season.
“Higher gas prices will continue to create obstacles to match the demand in the Petrochemical industries and to fulfill the needs from the end-users.” affirmed by a trusted trader in Houston.
According to ChemAnalyst, the prices of Natural Gas will surge in the commodity futures market as hot spring weather in the Southern U.S. will pressure the market that has already been concerned about tight supplies. US Natural Gas production is expected to decline sharply with low NG storage among the facilities. However, the exports from the USA to the European region will operate moderately according to the enterprise’s requirements.