Insight
Will the extreme cold in the US heat up the global gas market?
Report summary
North America gas markets endured a wild week – freezing weather through the middle part of the country simultaneously took out over 20% of gas production and added 20% more demand, sending regional day ahead gas prices on a wild ride with peaks in triple or even quadruple digits. Facing gas and power shortages across Texas, feedgas into LNG and ultimately LNG exports were curtailed from pre-storm levels. But with a warmer new week and the domestic market on a path toward normal, the weather event is proving to be relatively short-lived. Signs are pointing toward recovering LNG exports, but making up lost volumes will take some time. Will the extreme cold that has shocked US LNG supply provide a shock to the global market as volumes do not arrive as planned next month?
Table of contents
- US gas supply falls short on production freeze offs
- while heating demand peaked, causing extreme short-term price spikes
- What does this mean for US LNG exports?
- Small volumes and shoulder month timing limit impact to global gas prices
Tables and charts
This report includes 4 images and tables including:
- US production freeze off at record levels, but decline with milder weather and power restoration
- Colder weather increases domestic demand but set for steep fall off
- Feedgas to US LNG facilities falls but quickly starts to rebound
- Lost cargoes have minimal impact on end of season levels for European gas storage
What's included
This report contains:
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