US natural gas producer says prices are surging due to lack of adequate pipeline structure
EQT CEO Toby Rice reveals canceled pipeline projects have restricted 10% of US nat gas
Natural gas prices could escalate amid Russia-Ukraine tension
FOX Business' Lydia Hu explores the impact of rising gas prices as EQT CEO Toby Rice argues the solution is more infrastructure.
As tension between Russia and Ukraine intensifies, Europe’s natural gas supply is especially vulnerable, leaving U.S. prices at risk of escalating.
FOX Business’ Lydia Hu visited independent natural gas producer EQT in East Millsboro, Pennsylvania, Tuesday, where she spoke with CEO Toby Rice, who suggested the fix to high natural gas prices is increased production and investment in ‘adequate’ infrastructure.
"It’s because of the lack of adequate pipeline infrastructure," he said. "People need to be aware that we want to do more. Natural gas prices here in Pennsylvania -- $3.50 – well below what anybody’s paying in the northeast. We need more pipeline infrastructure."
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EQT pointed to four pipeline projects that have been canceled since 2016, which could have served more than 25 million homes. According to Rice, these nixed projects have restricted nearly 10% of the nation’s natural gas.
The CMA CGM SA Jacques Saade liquid natural gas (LNG) powered container ship docked with cargo at the Port of Le Havre in Le Havre, France, on Thursday, Jan. 21, 2021. Photographer: Nathan Laine/Bloomberg via Getty Images
Rice expressed that people should be "very upset" about the price they’re paying to heat their homes, and that failing to implement more U.S. infrastructure will only strengthen America’s dependence on foreign energy.
Sen. Elizabeth Warren, D-Mass., alongside other Democratic lawmakers, have recently called on the Department of Energy to cut exports of liquefied natural gas in an attempt to calm pricing.
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"We can’t let energy companies squeeze American consumers with unaffordable energy bills at home while reaping record profits through LNG exports abroad," Warren said in a statement. "The Department of Energy needs to reevaluate its LNG export policies and figure out how to keep prices low for American consumers."
Snow covered transfer lines leading to storage tanks at the Dominion Cove Point Liquefied Natural Gas (LNG) terminal in Lusby, Maryland, March 18, 2014. REUTERS/Gary Cameron
But Rice and other energy analysts tell Hu that this approach is not right as prices are set regionally, so most exports occurring from the Gulf Coast would have no impact on sky-high prices in New England.
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According to the U.S. Bureau of Labor Statistics [BLS], consumers are spending nearly 24% more on natural gas compared to last year while storage volumes are about 17% lower year over year.