On January 28, energy corporation Gazprom released analyses of the impact of extreme weather factors on the global gas supply chain.
Accordingly, the winter storm carrying cold air from the Arctic is significantly affecting US energy exports.
According to recorded data, natural gas flow to liquefied natural gas (LNG) plants in the US has decreased in the past weekend. The main reason identified is due to the sudden increase in energy demand for heating and power grid operation in the US before the severe cold spell.
A Gazprom representative shared a technical perspective that, in the short term, the US market is tending to retain the gas source expected for export to serve the domestic market. This is a natural reaction of the market to balance supply and demand and ensure local energy security against adverse weather developments.
Coordinating this gas flow is a common activity in the energy industry when manufacturing countries face surges in domestic consumption demand.
However, this also means that LNG supply for international partners, including the European market, may be affected by certain delivery schedules.
Besides the production factor, the impact of the weather is also clearly reflected in the price chart. At the Henry Hub transit station - an important reference point of the US gas market - gas prices delivered after a month have recorded a significant increase.
The price has reached $245 per 1,000 cubic meters, the highest recorded since December 2022. The increase in value in the US domestic market is creating a new price level, attracting suppliers to prioritize domestic sales to optimize economic efficiency and minimize complex transportation costs.
In that context, Gazprom believes that the European market will need to have more careful calculations in attracting goods sources. When US domestic prices become attractive, the competitiveness to import LNG shipments will increase. This requires European customers to be more flexible in price policies to ensure stable supply.
Current developments are proof of the close link between the global energy market, where weather fluctuations in North America can also create ripples affecting the other side of the Atlantic.
