Canadian LNG Expansion Drives Up US Natural Gas Prices

Growth prospects for Canadian liquefied natural gas (LNG) exports are boosting forward natural gas prices in the western United States, where supply is expected to increasingly vie with international markets.

This week saw two key announcements that strengthened Canada's LNG expansion plans. As a result, forward natural gas prices at points like SoCal and Sumas have posted strong gains. However, an El Niño event may cloud the winter price outlook for natural gas.