US natural gas prices rose 9% on Tuesday as Russia’s war against Ukraine continues to disrupt various commodity supply chains.
Prices surged above $8.00 per million British thermal units and hit a high of $8.17, representing the highest level since September 2008. Henry Hub prices stood 6.4% higher at $7.954.
The price increase comes as US-based energy companies receive higher demand for their product overseas. About 30% of planned US liquefied natural gas export capacity has been secured since Russia’s attack against Ukraine, according to a Bloomberg report. This has helped renew financing for the beleaguered sector that saw a dramatic, years-long downturn amid the bust of the 2015 shale boom.
Energy Transfer disclosed an 18-year supply deal with South Korea’s SK Gas Trading on Tuesday, just one day after it announced a 20-year contract with Gunvor Group. Furthermore, the French utility company Engie SA secured 2 million tons of liquefied natural gas from NextDecade’s proposed gas plant.
