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Article

Effects of the Henry Hub Price on U.S. LNG Exports and on Gas Flows in Western Europe

by 1,2,* and 3
1
Stadtwerke München GmbH, Emmy-Noether-Str. 2, 80992 Munich, Germany
2
IT & Technology, IU International University of Applied Sciences, Juri-Gagarin-Ring 152, 99084 Erfurt, Germany
3
Department of Service Information Systems Engineering, TU Ilmenau, Ehrenbergstraße 29, 98693 Ilmenau, Germany
*
Author to whom correspondence should be addressed.
Academic Editors: Ben Anthony and Muhammad Abdul Qyyum
Gases 2021, 1(2), 68-79; https://doi.org/10.3390/gases1020006
Received: 10 January 2021 / Revised: 12 March 2021 / Accepted: 19 March 2021 / Published: 25 March 2021
(This article belongs to the Special Issue Liquefied Natural Gas: Value Chain Enhancements)
Natural gas plays an important role in energy supply, and its fields of application are diverse. However, the world’s largest growth potential among fossil fuels is attributed to liquefied natural gas (LNG). In the last few years, the U.S. rapidly increased LNG exports, and it is expected that they will further increase the liquefaction capacities. The cost of the LNG value chain is composed of the natural gas price in the country of origin, and the LNG process costs for liquefaction, transportation, storage, and regasification. Thus, the Henry Hub (HH) price in the U.S. is important for U.S. LNG exports to Western Europe. In this paper, gas flows in Western Europe at the beginning of the 2030s are analyzed if the price at HH is higher or lower than expected. Furthermore, the effect of the HH price on monthly U.S. LNG exports are studied. For the calculations, the global gas market model WEGA is used. The results reveal that the price at HH has a significant effect on annual gas flows in Western Europe and also on U.S. LNG exports during the summer. Furthermore, it is shown that pipeline gas in Western Europe will absorb fluctuations of U.S. LNG exports between the presented scenarios. View Full-Text
Keywords: energy resources; gas market model; Henry Hub; linear programming; LNG; natural gas industry; value chain; Western Europe energy resources; gas market model; Henry Hub; linear programming; LNG; natural gas industry; value chain; Western Europe
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MDPI and ACS Style

Günther, M.; Nissen, V. Effects of the Henry Hub Price on U.S. LNG Exports and on Gas Flows in Western Europe. Gases 2021, 1, 68-79. https://doi.org/10.3390/gases1020006

AMA Style

Günther M, Nissen V. Effects of the Henry Hub Price on U.S. LNG Exports and on Gas Flows in Western Europe. Gases. 2021; 1(2):68-79. https://doi.org/10.3390/gases1020006

Chicago/Turabian Style

Günther, Maik, and Volker Nissen. 2021. "Effects of the Henry Hub Price on U.S. LNG Exports and on Gas Flows in Western Europe" Gases 1, no. 2: 68-79. https://doi.org/10.3390/gases1020006

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