If you’re living in the US and were wondering why your natural gas bills were lower this winter, the weather has been warmer than usual.
This led to a 2.4% reduction in natural gas consumption in 2023 compared to the previous year.
Natural Gas Prices to Increase Despite Lower Consumption
Despite the reduction in natural gas consumption in the residential and commercial sectors due to the warmer weather, natural gas prices are expected to increase in the coming months. This is due to increased demand from the reopening of the Freeport LNG export terminal and seasonal increases in natural gas demand in the electric power sector. However, the expected rise in prices is not expected to be significant.
US Natural Gas Prices Drop While Europe Experiences Price Fall
The global energy crisis triggered by Russia’s invasion of Ukraine and record-high inflation rates last year caused a dramatic surge in the cost of living for consumers worldwide. However, there is a silver lining in 2023 as the US price of natural gas has dropped by 40%, providing relief to American households. This is good news for homeowners who rely on natural gas for heating their homes and cooking. Europe, where natural gas prices hit an all-time high in August 2022, has also experienced a drastic fall in prices.
Liquefied Natural Gas (LNG) Exports to Increase
Despite the reduction in natural gas consumption in the residential and commercial sectors, US liquefied natural gas (LNG) exports are expected to increase in 2023. This is due to the return of the Freeport LNG export terminal and new LNG export projects under construction, which are expected to come online by the end of 2024.
The warmer winter in the US led to a reduction in natural gas consumption and lower bills for American households. Although natural gas prices are expected to increase in the coming months, the recent drop in prices is good news for US consumers who have been hit hard by the global energy crisis. Additionally, US LNG exports are set to increase, which is positive for the country’s economy. Europe, which saw record-high natural gas prices last year, has also experienced a fall in prices.