Globe says: Peyto's Gee upbeat on natural-gas priceshttps://www.stockwatch.com/News/Item/Z-C!PEY-3256418/C/PEY
Globe says Peyto's Gee upbeat on natural-gas prices
2022-05-24 09:16 ET - In the News
The Globe and Mail reports in its Monday edition that U.S. natural-gas prices have hit their highest level in 14 years as North American producers scramble to replenish supplies with demand soaring and storage levels declining. The Globe's Brent Jang writes that as Europe seeks to reduce its energy dependence on Russia, the United States has been increasing its exports of liquefied natural gas to European markets.
U.S. spot prices have almost tripled over the past year, spiking even higher after Russia's invasion of Ukraine in February. "Europe is very hungry for natural gas, especially since they have to displace Russian gas," said Darren Gee, chief executive officer at Peyto Exploration and Development. In Canada, where natural gas trades at a discount to the U.S. market, prices have also surged. Canada does not have any LNG export terminals, but the impact of rising U.S. shipments to Europe has had a ripple effect by raising demand for Canadian natural gas in the United States. Higher commodity prices could also make it more economically viable for LNG proposals, including those in Canada, to proceed. Canadian consumers could be in for sticker shock when they see their home heating bills later this year.