US to see winter spike in natural gas prices

The United States will see a nearly 30% increase in natural gas prices over the winter months, energy officials said in a new report

US to see winter spike in natural gas prices
18 Oct, 2022 02:20 HomeBusiness News

US to see winter spike in natural gas prices

Rising global demand is helping to drive up prices across the country, energy officials said

Natural gas bills are set to increase in all regions of the United States this winter, with surging demand and colder temperatures potentially forcing Americans to pay nearly 30% more over the previous year, according to projections by the US Department of Energy.

forecast published by the department’s Energy Information Agency (EIA) on Monday predicted a significant price hike over the winter months, suggesting some US households will pay an average of $931 for heating during the cold season – a 28% increase over 2021. Nearly half of all American homes are heated with natural gas.

While comparatively colder temperatures are expected to contribute to the rising prices, the EIA previously said growing “constraints on liquefied natural gas (LNG) exports to Europe from Russia” were creating “strong international demand” for American gas. The resulting boost in US exports has used “almost all” of the country’s available gas capacity and driven prices upward, with the US reporting its lowest natural gas storage levels in three years last April.

“dominated by fear and uncertainty,” observing that “the real problem isn’t shortage but pricing.”

“Citizens may be unable to pay their bills and businesses risk closing down,” he said, though voiced hopes the continent will “get through the winter fine” barring any “catastrophes” such as exceptionally cold weather or a major spike in energy consumption.

EU leaders are expected to meet later this week to discuss a price cap on natural gas for the bloc in an attempt to head off an energy crisis, with the European Commission reportedly planning to create a mechanism allowing it to intervene to force down prices when they surpass a “dynamic” maximum level.