March 26, 2022 – Billings Gazette
High natural gas prices persist for Montana homeowners
By: Tom Lutey
And LNG demand is high again in 2022, with European demand driven by sanctions on Russian gas being the wildcard. EIA expects LNG exports to be 16% higher this year, which would be the third record year in a row.
But the sky isn’t the limit for U.S. exports of liquefied natural gas, said David R. Braziel, analyst for RBN Energy, which publishes the Daily Energy Post. Infrastructure limits will act like a cap on growth.
“I really believe that the impact of what’s going in Russia and Ukraine can have on us is really capped by the amount of export capacity that we have,” Braziel said. “U.S. exporters are already trying to take advantage of that arbitrage as much as they possibly can to help satisfy the global supply shortfall.”
There are not only limits to export facilities in the United States, but in Europe they need more capacity to convert LNG back to a deliverable state. And they need pipelines from ports to deliver the gas.
There is enough natural gas in shale basins to produce gas priced more cheaply than what many people pay, Braziel said, but the infrastructure to get to end-markets might be too constrained.
Read the full article here: https://billingsgazette.com/news/high-natural-gas-prices-persist-for-montana-homeowners/article_aff6940e-2559-5265-8998-0cf7c1fc0ec7.html
