Natural Gas News – January 11, 2022
Natural Gas News – January 11, 2022
Higher Natural Gas Prices Push Up U.S. Wholesale Electricity Prices
Rising fuel costs, especially those of natural gas, drove up wholesale electricity prices in all U.S. regions in 2021, the Energy Information
Administration (EIA) said in an analysis on Friday. Average wholesale prices for electricity at all major trading hubs in the United States were higher in 2021 than in 2020 as a result of the rising costs of the fuels used for power generation. Natural gas accounts for the single largest share of U.S. electricity generation and represented 40 percent of the fuel used for power in 2020. “The cost of natural gas is a significant driver of electricity prices because it often acts as the marginal (highest cost) fuel of generating units that operators dispatch to supply electricity,” the EIA said. Apart from generally higher natural gas prices in 2021 compared to 2020, the Texas … For more info go to https://bit.ly/3tdz2KB
US becomes world’s top exporter of liquified natural gas
Sky-high European demand drove U.S. liquefied natural gas (LNG) exports to a record in December, Refinitiv data showed, with winter
supply worries set to sustain orders for the fuel. About half of the record U.S. LNG volumes shipped last month went to Europe, up from 37% earlier in 2021, data from Refinitiv and the U.S. Energy Information Administration showed. The gains reflected soaring demand for the home heating and industrial fuel that pushed prices in Europe and Asia to record highs. The United States has ample and cheap supplies as its shale oil and gas boom in the last two decades led to domestic production that has exceeded U.S. demand by about 10%. Vessel tracking data showed about 7.15 million tonnes of LNG were shipped last month on 106 vessels, up 16% compared to 6.14 million… For more info go to https://reut.rs/3zMR1bT
This article is part of Daily Natural Gas Newsletter
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
