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Energy Tomorrow Blog

Price Spikes in New England Limited by Natural Gas – Just Not Ours

consumers  natural gas  liquefied natural gas  imports  marcellus  utica shale 

Jessica  Lutz

Jessica Lutz
Posted May 17, 2019

It seems like each winter we see consumers in New England suffering not just from freezing temperatures but also the highest energy prices in the country (see here and here) – largely because there’s not enough natural gas infrastructure to serve the region during periods of peak winter demand. This past winter, the news was a little bit better.

Natural gas prices generally follow seasonal patterns and tend to rise in the winter. For example, the U.S. Energy Information Administration (EIA) has suggested

that liquefied natural gas (LNG) imports  helped to moderate energy price spikes in the region this year. ...

Still, domestic infrastructure constraints in New York and New England mean that residents remain faced with relatively high and uncertain energy prices plus the possibility of winter shortages – not to mention the unnecessary stress those conditions put on the region’s power grid. 

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U.S. LNG Accelerates Shifts in the Global Marketplace

liquefied natural gas  lng exports  consumers  global markets 

Dustin Meyer

Dustin Meyer
Posted April 26, 2019

Over the past few weeks, we’ve published a series of posts on the United States’ emergence as a major global natural gas exporter, including discussion of the benefits both at home and abroad (see here and here).

In this post, we’ll look at how the business of liquefied natural gas (LNG) is changing in exciting ways—ways that give customers around the world unprecedented flexibility and access to clean and reliable natural gas.

We’ll see that while some of these trends have been in motion for years, it’s been the introduction of U.S. LNG into the market that has really accelerated this shift. With multiple project developers pursuing a wide range of structures and technologies, it’s clear that the U.S. is once again at the forefront of innovation in this critical part of the world’s energy sector.


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The $670 Million Question for New York, New England Consumers

consumers  natural gas  infrastructure  liquefied natural gas  imports 

Mark Green

Mark Green
Posted April 4, 2019

A pair of graphics prepared by API Chief Economist Dean Foreman help underscore the impacts of bad, consumer-impacting policies blocking needed natural gas infrastructure in New York and New England.

First, because New York and New England don’t have enough natural gas pipeline capacity to meet the needs of consumers, especially during peak-demand months in the winter, the two have had to import liquefied natural gas (LNG) to help fill in the gaps.

As Dean’s graphic shows, 90 percent of the $1.2 billion in LNG the U.S. has imported since 2016 went to NY/NE. The bad news for consumers is that they paid about $670 million more for the imported LNG than they would have paid for domestic natural gas – that should have been available from the nearby Marcellus shale play with sufficient infrastructure to deliver it.


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U.S. LNG is the Energy for Global Progress

lng exports  liquefied natural gas  trade  economic growth 

Dustin Meyer

Dustin Meyer
Posted March 27, 2019

We’ve focused on the numerous domestic benefits from liquefied natural gas (LNG) exports, which follow the United States’ emergence as a major LNG supplier to the world market. Now let’s explore the ways U.S. LNG can help other countries meet their most pressing energy and environmental challenges.

First, let’s note that U.S. LNG exports have grown rapidly in just a few years, with cargoes reaching 34 countries across five continents.

At the same time, global LNG demand has skyrocketed. As recently as 2009, demand totaled only 182 million metric tons per annum (MMTPA). In 2018, it hit a record 319 MMTPA, a 75 percent increase.


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Series: Plentiful LNG Enhances U.S. Global Leadership

liquefied natural gas  lng exports  trade  us energy security  prices 

Dean Foreman

Dean Foreman
Posted March 25, 2019

For U.S. natural gas, the fourth quarter of 2018 ended with consumers benefiting from the lowest prices in nearly a year – despite the weakest inventories and coldest winter since 2014.

Indeed, recently we’ve seen natural gas prices as low as $2.56 per million Btu (Feb. 5, Bloomberg) corresponding with record high demand of 96.3 billion cubic feet per day (bcf/d) of marketed production for February 2019 and low inventories – 415 billion cubic feet below the five-year average range as of Feb. 1.

It’s remarkable, because this combination of factors ordinarily would raise natural gas prices. The fact that prices fell illustrates the vigor of domestic production, which has soared during the U.S. energy revolution.

Domestic abundance and affordability have been at the heart a truly amazing U.S. natural gas story – one that has seen U.S. producers meet domestic needs and also increase liquefied natural gas (LNG) exports to friends and allies around the world.


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U.S. LNG Exports: Room to Grow

lng exports  liquefied natural gas  trade  economic growth  production 

Mark Green

Mark Green
Posted January 3, 2019

A new chapter in U.S. natural gas exports is unfolding before our very eyes – and with it, strengthened American energy influence abroad, increased trade and support for domestic natural gas production and jobs.

The U.S. Energy Information Administration (EIA) projects that 2019 will see U.S. liquefied natural gas (LNG) export capacity will reach nearly 9 billion cubic feet per day (Bcf/d) by year’s end, up from EIA’s 2018 estimate of 4.9 Bcf/d. The U.S. would rank third in the world behind Australia and Qatar. 

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Don’t Let U.S. LNG Exports Become Casualty of Tariff Policy

trade  lng exports  liquefied natural gas  china 

Mark Green

Mark Green
Posted August 8, 2018

A couple of observations on China’s announcement late last week that it may impose a 25 percent tariff on U.S. shipments of liquefied natural gas (LNG) to that country – which would be in retaliation for announced U.S. tariffs on certain Chinese goods coming into this country.

First, China was the third-largest importer of U.S. LNG in 2017, accounting for nearly 15 percent of our LNG exports, according to the U.S. Energy Information Administration (EIA).  As those numbers indicate, this exchange of tariffs could leave a mark as far as U.S. energy exports are concerned. ...

If U.S. energy exports are restricted – at the same time trade policies have been adopted that increase the cost of the steel our industry uses – there’s a risk of significantly affecting a sector that has been a driving force for economic growth. It’s a big price to pay. 

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U.S. Innovations Shift Global LNG Market

liquefied natural gas  lng exports  innovation  trade 

Dean Foreman

Dean Foreman
Posted March 12, 2018

Low U.S. natural gas prices have spurred liquefied natural gas (LNG) exports and major petrochemical projects that have become a springboard for U.S. jobs, wages, housing, education and services – everything that comes with major new capital projects and their broad-based boost to the economy. An important corollary is that U.S. technological innovation is translating into innovative business practices that are helping to increase the global trade, volumes and liquidity of natural gas markets while also advancing environmental goals by reducing greenhouse gas emissions in the power sector. 

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U.S. Energy’s Growing Strength in Global Markets

energy exports  liquefied natural gas  lng  trade 

Mark Green

Mark Green
Posted November 30, 2016

Perhaps more importantly, the November natural gas export/import numbers suggest new U.S. muscularity in the global energy marketplace, built by America’s domestic energy renaissance. Record natural gas output, largely developed with advanced hydraulic fracturing and horizontal drilling, is creating export opportunities for U.S. liquefied natural gas (LNG) and increasing U.S. energy influence globally.

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LNG Exports for Our Economy, Manufacturing and Environment

liquefied natural gas  lng exports  economic benefits  manufacturing  climate 

Mark Green

Mark Green
Posted October 3, 2016

As is the case with any tradable commodity, selling U.S. natural gas outside this country promotes domestic jobs and economic growth. Expanding demand for U.S. natural gas in global markets through LNG exports will result in increased domestic investment, enhanced GDP growth, rising incomes and more well-paying jobs. At the same time, U.S. LNG exports will expand global natural gas markets – enhancing U.S. influence to encourage transparency and fair market rules while strengthening relationships with our allies.

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