The large gap between domestic US natural gas prices and LNG prices in European and Asian markets that underlies the rationale for US LNG exports has raised the question: when US gas is sold abroad, who captures that spread? The difference between low prices paid for gas produced in the US – currently trading at… Keep reading →
Exporting liquefied natural gas (LNG) from the US will raise domestic natural gas prices little – and possibly not at all – because the international market won’t take enough LNG to make a difference.
That was the conclusion of three economists who separately studied international LNG prospects. They presented their results to the International Natural Gas Workshop sponsored by the US Energy Information Administration (EIA) in Washington DC recently. Keep reading →