US LNG export facilities have been running at near capacity as the worldwide demand for natural gas continues to grow. Increased natural gas exports leave the US with less supply, leading US natural gas prices to reach their highest levels in years. If the winter season is as cold as expected, natural gas prices could hit $6/MMBtu.
In addition to increased exports, decreasing production and lower than average inventories also contribute to the higher prices. According to recent EIA data, natural gas inventories in the US is 3% below it’s five-year average in November. By March 2022, the amount of natural gas in storage is anticipated to be 12% less than the previous five-year average for that time of year.
Surging US LNG exports hike domestic gas prices amid global supply crunch
U.S. natural gas in storage in early November is 3% below the recent average
U.S. Natural Gas Prices Could Soon Hit $6
U.S. Natural Gas Prices to Remain High Through Winter as Exports Surge, Says EIA