Commodities
Canadian LNG Expansion Sparks Price Surge in Western US Market
The expansion of Canadian liquefied natural gas (LNG) export projects is poised to boost competition and prices for the western US market.
Growth prospects for Canadian LNG exports strengthened this week with two key announcements, leading to strong gains in forward natural gas prices at points across the western United States that are expected to increasingly vie with international markets for supply.
At a glance, the Canadian LNG expansion is tightening the supply outlook for the region. SoCal and Sumas forwards have posted significant price increases, while El Niño clouds the winter price outlook.