Oct 01, 2021 17:18:00

Winter heating costs could jump due to lack of natural gas

The global economy has fallen due to the epidemic of the new coronavirus infection (COVID-19), but the economy is gradually recovering due to the spread of vaccines. Meanwhile, there are concerns that the price of natural gas will soar on a global scale and heating costs in winter will be high.

Another headwind ?: global gas price spike worries energy execs | Reuters

https://www.reuters.com/business/energy/another-headwind-global-gas-price-spike-worries-energy-execs-2021-09-21/

Soaring gas prices ripple through heavy industry, supply chains | Reuters
https://www.reuters.com/business/energy/soaring-gas-prices-ripple-through-heavy-industry-supply-chains-2021-09-22/

Natural gas prices rising, which helps the cleanest (and dirtiest) electricity sources --Chicago Sun-Times
https://chicago.suntimes.com/business/2021/9/30/22701248/natural-gas-prices-rising-electricity-sources

Higher natural gas prices to drive Exxon third-quarter earnings | Reuters
https://www.reuters.com/business/exxon-expects-higher-gas-oil-prices-boost-quarterly-earnings-by-up-15-bln-2021-09-30/

France to block further natural gas and electricity price rises | Reuters
https://www.reuters.com/business/energy/france-block-further-natural-gas-electricity-price-rises-2021-09-30/

Reuters reports that natural gas prices have doubled in the United States and 3.8 times in Europe. The reason for the sharp rise in natural gas prices is that demand in Asia, which is recovering from the COVID-19 pandemic, is increasing, and exports from Russia, a natural gas supplier, are lower than usual. It is believed to be in.

Europe has been particularly affected, with two UK factories producing chemical fertilizers shut down due to a shortage of natural gas. In addition, the shutdown of chemical fertilizer factories will deplete the carbon dioxide produced until then, affecting the food industry, which used carbon dioxide for packaging and processing livestock meat.

Some British meat processors have already shut down due to lack of carbon dioxide. In response to the situation, the British government signed a contract with CF Industries Holdings, an American chemical fertilizer manufacturer, but carbon dioxide prices are expected to rise sharply. In addition, some steel makers have also stopped operations due to soaring natural gas prices.

In addition, as the use of heating appliances increases over the winter, soaring electricity bills are expected. Natural gas, which was already

$ 1.79 per MMBtu in India, has increased by about 62% to $ 2.9. Also in the United States, the price, which was about 2.58 dollars (about 289 yen) per 1 MMBtu, has risen to 5.82 dollars (about 647 yen). Price increases are temporary and are expected to subside in the spring of 2022, but there are concerns that winter electricity bills will jump in areas that rely on natural gas. For this reason, in France, the government will provide some households with a lump sum of 100 euros (about 12,800 yen) and will consider further measures to reduce the burden on non-wealthy people. ..

ExxonMobil's earnings in the third quarter of 2021 are expected to increase by up to $ 1.5 billion (approximately ¥ 166 billion) from the previous fiscal year due to soaring natural gas prices. In addition, as the price of natural gas continues to rise, the price of clean energy such as wind power generation and solar power generation is expected to rise due to energy demand.