Why Does Boston Buy Natural Gas from Russia?
Andy May – 20 June 2022
Europe is vulnerable and needs our natural gas; prices are absurd and going higher. Yet, everyone in the oil and gas industry is afraid to invest any money, even if they have financing available. Who wants to start a 10- to 20-year natural gas project, whether it’s a gas field, pipeline, or LNG (liquified natural gas) terminal, when the administration is saying they will shut you down in 10 years?
“You’ve got six years, eight years, no more than 10 years or so,” says Climate Envoy John Kerry. “No one should make it easy for the [natural] gas interests to be building out 30- or 40-year infrastructure.”
In the meantime, India has relaxed its environmental regulations and plans to double its use of coal. China has cut coal import tariffs to zero to ensure energy security and lower costs.
The United States has an abundance of both coal natural gas. Yet, natural gas is imported to Boston’s LNG facility from Russia, Canada, and the Caribbean at great cost due to the lack of pipeline capacity. In late January natural gas from the Algonquin City Gate Hub (near Boston) sold for over $20 per million BTUs, and more than $23 on the futures market. Natural gas from nearby Pennsylvania, in January cost $4.
https://co2coalition.org/2022/06/20/why-does-boston-buy-natural-gas-from-russia/