Reuters - U.S. natgas rise to 7-year high on record global prices

September 28, 2021 – Reuters

U.S. natgas rise to 7-year high on record global prices

By: Scott DiSavino

But no matter how high global prices rise, the United States has the capacity to turn only about 10.5 bcfd of gas into LNG. Global markets will likely have to wait until later this year to get more from the United States, when the sixth liquefaction train at Cheniere Energy Inc's (LNG.A) Sabine Pass and Venture Global LNG's Calcasieu Pass in Louisiana start producing LNG in test mode.

"The U.S. LNG export capacity ceiling is likely the only thing reining in Henry Hub prices from following European and Asian gas/LNG prices to the moon," said Sheetal Nasta at RBN Energy, noting: "As explosive as Henry Hub futures are these days, if not for the capacity constraint, they would be much higher."

With the coming of cooler weather, Refinitiv projected average U.S. gas demand, including exports, would rise from 81.8 bcfd this week to 82.8 bcfd next week as homes and businesses start to crank up their heaters. Those forecasts, however, were lower than Refinitiv projected on Monday.

Read the full article here: https://www.reuters.com/business/energy/us-natgas-track-highest-since-2008-global-prices-soar-2021-09-28/