Natural gas exporters stand to gain from President Donald Trump’s decision to leave the Iran nuclear deal because the move to curb Iran’s oil output and encourage shale drilling could cause prices to tank in West Texas, Houston Chronicle reports.
The drop in natural gas prices, already down 48% in West Texas, according to Tudor Pickering Holt & Co., would be a boon for Cheniere Energy and Dominion Energy the only two companies that currently export US shale gas worldwide—especially as the market for liquefied natural gas grows in Asia.
Several other companies, including Tellurian, plan to start projects in the next decade and could take advantage of the price drop.
The White House has long supported increasing American natural gas exports to help cut the trade deficit with Asian companies and since the boom of oil in West Texas has overloaded pipelines, prices there are the cheapest of any major US shale play. Â
After the Iran sanctions take effect, they’ll make contracts for natural gas linked to oil prices in other parts of the world more extensive, potentially increasing demand for cheap US shale gas.
