U.S. Cold Wave Disrupts Worldwide Gas Supplies

Imagine, a severe winter storm hits the US, and suddenly folks in Europe are paying more to heat their homes. That's exactly what's happening right now in January 2026, as an Arctic blast freezes parts of the country and shakes up the world's liquefied natural gas, or LNG, market. It's a reminder of how connected our energy world has become.

The storm slammed into the Northeast and Midwest starting around January 22, dropping temperatures way below normal. In places like Texas and New Mexico's Permian Basin, where a lot of natural gas comes from, wells are literally freezing up, they call it "freeze-offs."

Production has dipped to about 108 billion cubic feet per day from a high of nearly 110 last month. Meanwhile, US demand for gas to keep homes warm spiked to 156 billion cubic feet daily, way above the usual 137 for this time of year. This crunch means less gas for export as LNG. The US became the top exporter last year, shipping over 100 million tons, mostly to Europe after Russia cut off supplies back in 2022. Now, with US facilities like those in Freeport and Sabine Pass cutting back, Europe's gas prices have jumped.

The key European benchmark rose 38% this month to around 40 euros per megawatt-hour, the highest since mid-2025. Storage there is only at 48%, down from 58% last year, adding to the worry. Past events, like the 2021 Texas storm that slashed output by 20%, taught us this, but it keeps happening. This freeze might ease soon, but it highlights our need for more reliable energy setups worldwide.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO