What about natural gas prices?
But what happens if you do go ahead and convert to natural gas? Well, you would be looking at a potential upfront cost of thousands of dollars. It would take years, if ever, to recoup that cost in energy savings, especially now, with natural gas rates rocketing upward. Read more about the Cost to Convert.
Other factors that may affect natural gas prices
- Power plants are converting from coal to natural gas faster than expected, causing a significant rise in demand.
- U.S. suppliers have been rushing to export domestic gas to markets in Europe and Asia, where they can charge more money. A decrease in domestic supply may result in higher prices.
- According to the Energy Information Administration, natural gas exports reached record levels in 2018, driven primarily by exports of liquefied natural gas (LNG) and secondarily by pipeline exports to Mexico. LNG export capacity is expected to continue growing in 2019 as new LNG export facilities enter service.