Russian War Boosts US Midstream

Depleted natural gas inventories and market uncertainty across Europe make U.S. LNG a hot commodity as several countries begin to hedge bets on Russian gas.

Russian War Boosts US Midstream

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A confluence of world events is depleting natural gas inventories, raising commodities prices and U.S. exports to record levels that will likely continue to grow throughout the rest of the year, according to analysts at the Federal Reserve Bank of Dallas.

And that could make the U.S. midstream industry a key beneficiary of the tumult.

Diminished general inventory and the geopolitical impact of Russia’s invasion of Ukraine are driving the commodity’s sharp rise in prices both global and domestic. In Europe, natural gas is trading at more than $30 per MMBtu in response to Russia’s aggression. Elsewhere, buyers chased the benchmark Japan–Korea marker for LNG to average $29 in April, the Dallas Fed said.

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