Henry Hub prices have gone global

US gas producers no longer have the luxury of being able to largely ignore global gas markets, as the past summer’s experience of underutilized US LNG has shown us. The chance of a sequel to the “great US LNG pushback” next year will be determined by European and Asian markets. The pace of economic and gas demand recoveries in both, as well as Russian’s access to pipeline infrastructure in Europe, are questions that should concern US producers. After all, US LNG will come to represent about 12% of their potential market next summer, and as we’ve seen, that space can shrink in the blink of an eye.