Gas supplies in several northeastern states could decline if the weather deteriorates, the outlet reports, citing network officials
New England could face power outages in the coming months as more global liquefied natural gas (LNG) shipments head to Europe, The Wall Street Journal reported on Monday, citing producers of electricity.
Rising demand for LNG across the ocean amid dwindling gas flow from Russia jeopardizes supplies needed to provide electricity to the northeastern region of the United States, report says – including Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island. . These states have limited pipeline capacity and depend on LNG imports from abroad for more than a third of their gas supply during peak demand periods, according to the Energy Information Administration. They also cannot buy LNG produced in the US due to the Jones Act, which prohibits vessel traffic between US ports.
Europe is also a much more attractive buyer for LNG suppliers than New England. According to the outlet, while the European benchmark price for natural gas was above $100 per million British thermal units, gas prices in New England rarely exceed $30.
Earlier this year, governors of some New England states sent a letter to US Energy Secretary Jennifer Graholm asking her to dispel the Jones Act and allow domestic LNG imports into the region. . However, there have been no reports so far of any change in the legislation.
The situation in the region is expected to be particularly dire in the event of prolonged cold spells, as gas volumes would be redirected from power generation to home heating. According to ISO New England, the region’s electricity grid operator, an extremely cold winter could lead to the need for continuous outages to balance electricity supply and demand. Analysts warn that supply shortages could also prompt power producers to buy gas on the spot market, leading to higher bills.
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