The Price of Natural Gas Is Dropping. Why?

The cost of natural gas can be volatile, but you may have noticed that since the autumn, the price to power your home's gas appliances has gone down. This is particularly noticeable when inflation is straining the global economy. What's going on? Let's look at some of the reasons why prices are so low.

Autumn's Weather Was Milder Than Usual

Much of the country enjoyed a warmer autumn than usual, reducing the need to turn on the furnace. That meant that demand for natural gas was lower than usual and helped build up the national stockpile of LNG.

The U.S. Exported Less Gas This Year

A key liquid natural gas (LNG) exporting facility in Texas, the Freeport plant, caught fire in the summer. As a result, the plant was temporarily shut down for repairs, increasing the supply of LNG in the U.S. That's good news for Americans but bad news for Europe, which has been double-whammied by fewer U.S. exports and Russia curbing the flow of LNG to the E.U.

Natural Gas Producers Are Becoming More Efficient

Companies drilling for liquid natural gas are quickly becoming more efficient, thanks to new technologies. That means the production of liquid natural gas is increasing year after year. Increased supplies help lower LNG prices.

Will This Downward Trend Become the New Normal?

If the past several years have proven anything, it’s to expect the unexpected. For instance, an unusually cold winter could begin driving LNG prices up due to rising demand. 

True Natural Gas promises the lowest possible price on the liquid natural gas that many Georgians rely on all year round for their cooking and heating needs. Check out our pricing plans which can lock in your rates per therm.

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