A deep Arctic cold snap across the U.S. is rippling far beyond domestic energy markets, highlighting how tightly linked the global liquefied natural gas system has become, Reuters writes.
The freeze has driven U.S. natural gas prices up nearly 70% in a week, boosted winter demand and raised fears of production disruptions caused by “freeze-offs” in key shale regions such as the Permian Basin.
Those supply constraints are significant because the U.S. is now the world’s largest LNG exporter, with about two-thirds of its shipments flowing to Europe, which has grown heavily dependent on U.S. gas since Russia cut pipeline supplies. As a result, cold weather in the U.S. is now pushing up gas prices in Europe and Asia, where inventories are already running below last year’s levels.
The episode underscores how extreme weather—expected to become more frequent with climate change—can quickly tighten global energy markets. While massive new LNG capacity is coming online later this decade, the near-term reality is greater price volatility and stronger links between U.S. weather, export flows, and overseas energy costs.
Read the full story from Reuters.
