Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Trade group wants restrictions on U.S. natural gas exports

A manufacturers trade group on Friday urged the Department of Energy to order U.S. LNG producers to reduce exports, warning of price increases and supply shortages this winter.

Natural gas prices have surged this year on strong global demand and modest production increases in the first half. The call for U.S. natural gas has more than doubled prices, with exports up 41% from a year ago. U.S. gas was trading around $5.22 per million British thermal units (mmBtu) on Friday, up from $2.54 mmBtu in January.

Industrial Energy Consumers of America (IECA), a trade group representing chemical, food and materials manufacturers, said U.S. prices would have to increase to $10 per mmBtu to provide incentive to producers to pump more gas and bring stocks back to historic levels.

U.S. utilities have stored less gas than normal for the winter heating season, when demand for the fuel peaks. U.S. stockpiles are 7% below the five-year average for this time of year.

"What we seen and proven repeatedly time and time again is that the price of natural gas has not been negatively impacted by LNG exports," said Charlie Riedl, executive director of Center for Liquefied Natural Gas.

ICEA asked the Energy Department to freeze permitting for new LNG export plants and to order producers to reduce shipments until U.S. inventories increase.

“Buyers of LNG who compete for natural gas with U.S. consumers are state-owned enterprises and foreign government-controlled utilities with automatic cost pass through," said Paul Cicio, president of IECA. "U.S. manufacturers cannot compete with them on prices.”

Reporting by Rithika Krishna in Bengaluru

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment
-Lee Nichols
Modern society would not be possible without the use of pipelines to transport natural gas, crude oil and finished products to demand centers.

Optimizing Gas Distribution: Accounting for Changeovers, Regulators, and More

Register Now

Gas distribution systems are critical to the effective operation of many industrial facilities around the world. Despite the importance of these systems, however, opportunities to improve their performance and cost-effectiveness are often missed or misunderstood. Increasing changeover pressure may seem like a good way to improve system flow, for example, but it often does so at the expense of bottled gas. Adding regulators may help you control supply pressure, but it also adds cost to your system. So, how do you know what the ideal gas distribution setup is for you?

Attend this webinar to:

  • Gain a basic understanding of the fluid dynamics that affect pressure control in gas distribution systems, learning to interpret flow curves and recognize phenomena like lockup, droop, and supply pressure effect (SPE)
  • Learn how inlet pressure affects regulator performance and when to specify certain regulator types and configurations to effectively control gas system pressures

Understand the inherent trade-offs between gas utilization and flow capacity and how to select both the right changeover pressure and automatic changeover panel design for your operations.

May 4, 2021 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2022 Gulf Publishing Holdings LLC.