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Surge in Natural Gas Prices Caused by Lack of Pipeline Structure

Europe’s natural gas supply is especially susceptible as tensions between Russia and Ukraine escalate, putting US prices at risk of rising. Lydia Hu of FOX Business paid a visit to EQT, an independent natural gas producer based in East Millsboro, Pennsylvania, on Tuesday, where she spoke with CEO Toby Rice, who said that increasing production and investing in “sufficient” infrastructure might help lower natural gas prices. We need to let people know that we wish to do more.

Natural gas costs in Pennsylvania are $3.50, which is far less than what everyone in the northeast is paying. More Pipeline infrastructure is required. Since 2016, four Pipeline projects have been cancelled, which could have serviced more than 25 million homes, according to EQT. According to Rice, these cancelled projects have hampered approximately 10% of the country’s economic growth.

Surge in Natural Gas Prices Caused by Lack of Pipeline StructureRice stated that people should be “extremely unhappy” about the cost of heating their homes, and that failure to invest in more American infrastructure will only increase America’s reliance on foreign energy. Sen. Elizabeth Warren, D-Massachusetts, and other Democratic senators have lately urged the Department of Energy to reduce liquefied natural gas exports in an effort to stabilise prices.

However, Rice and other energy specialists told Hu that this strategy is flawed because prices are established regionally, and most shipments from the Gulf Coast would have no effect on New England’s sky-high pricing. Consumers are spending over 24% more for natural gas than they were last year, according to the US Bureau of Labor Statistics [BLS], although storage volumes are down roughly 17% year over year.

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