Texas Governor Bans Natural Gas Exports – tech2.org

Texas Governor Bans Natural Gas Exports

Texas Governor Greg Abbott has banned natural gas exports until normal power supplies are restored, Reuters reports, citing a statement from the governor.

The export ban is in effect through Sunday, and Abbott noted, “That will also increase the energy that will be produced and delivered to homes here in Texas.”

What social media users call Texas Freeze wreaked havoc on the Texas grid and its energy industry as wellheads and production platforms have not been insulated against freezing temperatures. As a result, natural gas production has plummeted, leading to price spikes that topped the $ 9,000 per MWh ceiling imposed by the state’s energy regulator.

The Lone Star state produces about 25 percent of the total for the United States. In December, the state’s share was between 22 and 27.8 billion cubic feet per day. Now, this has dropped to between 8 and 10 billion cubic feet, according to different estimates.

According to industry experts cited by Natural Gas Intelligence, at least 7 billion cubic feet of production capacity had been disrupted by the freezing weather, leading to wellhead freezing, gas processing plant closures and pipe cuts.

According to Reuters Refinitiv data, this week’s production rate fell from 7.9 billion cubic feet before the freeze to 1.9 billion cubic feet now.

Texas exports much of its natural gas production to other states and to Mexico: up to 40 percent of Mexico’s gas imports to the United States come from Texas. These exports also fell this week from 5.7 billion cubic feet to 3.8 billion cubic feet.

Due to its dependence on US imports, Mexico, in its northern part, was also affected by the Texas gas production cut this week. Media reports said that on Monday, up to 4.77 million people in northern Mexico were without power due to the events in Texas.

By Charles Kennedy for Oil Moderno

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