Natural Gas Exports will increase NG price

[dan_s]

Natural gas is going for as much as $12 per million BTUs in Europe and $18 in a few Asian markets. At those prices, there's no way we're going to leave all that money on the table. Starting in late 2015 the U.S. will export over 3 Bcf per day (a TCF per year). Exports of natural gas will increase to at least 3 TCF per year by 2020. I believe this will push natural gas prices in the U.S. over $6.00/mmbtu during the winter of 2015-2016.

This should create a HUGE improvement in the U.S. trade deficit. Washington finally gets it.

Last week, this is what Reuters published after a new export permit was issued:

The Obama administration on Wednesday authorized natural gas exports from a fourth U.S. facility, unexpectedly accelerating a review process that would-be gas exporters and their allies in Congress had criticized as too slow.

This speed at which the latest approval was reached — just five weeks after the previous project — puts the Department of Energy on a potential pace to rule on several more projects before year's end.

This latest approval is for Dominion Resources (NYSE: D). This is the third of four approvals over the past nine months. And if you think for a moment that more approvals aren't coming, you're kidding yourself.