Growth and shifts in natural gas pricing
Ohio’s natural gas prices have declined slightly over the past few months. According to the United States Energy Information Administration, since April 2017 prices have gone down from $3.28 per Mcf to $3.07 per Mcf. This decline in prices could be short lived following the approval of several new liquefied natural gas export terminals in the United States.
Export Terminal Growth
The Federal Energy Regulatory Commission (FERC) released a list of the new North American liquid natural gas import and export terminals approved as of May 1, 2017. In the United States, there are currently only two operating export terminals – one in Kenai, Alaska and one in Sabine, Louisiana.
In order to keep up with the rapid growth in the demand for natural gas and to further promote energy exports, 11 additional export terminals have been approved for construction in the United States. Of those locations approved, six are currently under construction:
- Sabine, Lousiana
- Hackberry, Louisiana
- Freeport, Texas
- Cove Point, Maryland
- Corpus Christi, Texas
- Sabine Pass, Louisiana
- Elba Island, Georgia.
Four other locations, all in Louisiana, have been approved, although construction has not yet commenced.
Natural Gas Exports – Europe
On June 8, 2017, Heather Nauert, a spokesperson from the U.S. Department of State, gave a statement regarding the United States’ first liquid natural gas delivery to Poland. She said:
“The United States welcomes the arrival of the first U.S. liquefied natural gas (LNG) shipment to Central Europe, which arrived in Poland on June 7. U.S. LNG exports support American jobs, lower energy prices for our partners abroad, and contribute to Europe’s energy security goals using a reliable, market based supplier.”American exports of natural gas to Europe are a means by which the United States can expand our influence in Eastern Europe. Additionally, such exports promote what President Trump calls “Energy Dominance”, and sets the stage for the United States to promote economic growth in Europe and elsewhere.
Justin Abbarno, a legal intern at McDonald Hopkins, assisted with the research and writing of this blog post.