Demand for U.S. natural gas is HIGH

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LNG exports from U.S. could be major green initiative. Financial Times.

The head of the largest US natural gas producer (EQT) has said boosting American exports of the fuel could be the “biggest green initiative on the planet” by displacing coal at power stations. Global coal-fired electricity generation will hit a new all-time high in 2021, the International Energy Agency said last week in what it called a “worrying sign” for the climate. Toby Rice, chief executive of natural gas company EQT, said in an interview that the world would decarbonise more quickly if Asian countries could buy more liquefied natural gas to replace coal to generate power.

Almost a year ago, on Christmas Eve (12-24-2020) the price of natural gas hit the low for the last 12-months, $2.31/MMBtu. Today, the front month NYMEX contract (JAN22) is trading for $3.81/MMBtu and Europe is offering over $47/MMBtu for a ship full of LNG.

There is a global shortage of space heating fuels and natural gas is at the top of the list.