US natural gas spiked 8% Wednesday afternoon upon news that the Freeport LNG export facility in Texas has been given regulatory approval to re-open in October at 2 bcf/day. This was a market-moving event because there was no guarantee this would actually happen, and in fact some sources had been indicating the re-opening would be dragged out an additional 3+ months.
This will increase demand for US natural gas by more than 2% (a significant increase) just when the winter heating season is approaching.
Current demand for US LNG is above our export capacity thanks to the dire situation in Europe. Dutch TTF Natural Gas price (the benchmark for Europe) is currently over $61/MMBtu and the Japan/Korea benchmark is over $45/MMBtu.
Here is why HH ngas price is back over $8.00 - Aug 4
Here is why HH ngas price is back over $8.00 - Aug 4
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group