The Freeport LNG export terminal will not be restarting until later this year, and the resulting significant drop in pricing, demonstrates the clear connection between LNG exports and the inflationary impacts to domestic prices for natural gas and electricity. On June 7, 2022, Henry Hub prices reached $9.28/MMBtu. The average price in 2021 was $3.89/MMBtu.
Paul Cicio, President and CEO of IECA stated “The significant price drop of over $2.00/MMBtu would save consumers approximately $63 billion annually as compared to the average price in 2021. It should be alarming to federal policymakers that the Freeport LNG terminal only exports 2 Bcf/d, yet it is having such a significant impact to prices.
- June 7, 2022: The day before the fire. Closing price was $ 9.28/MMBtu
- June 8, 2022: Day of the fire: Closing price of $8.69/MMBtu
- June 14, 2022: Freeport LNG announces it will not resume exports until late 2022. Prices are trading around $7.21/MMBtu.
*Prices for NYMEX Henry Hub natural gas prices for July contracts.