Energy Crisis Is Making Multi-Year U.S. Gas Contracts Hip Again
- Manufacturers are lining up prices until 2024 and even later
- U.S. producers may not quickly ramp after years of low profits
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U.S. manufacturers and other large energy users are starting to lock in natural gas and power costs for at least three years or longer to buffer against price surges this winter, a practice that went out of vogue with the shale boom.
With gas prices more than doubling from a year earlier during the annual shopping season for winter fuel, many factories are securing prices until 2024 to help mitigate impending surges, according to consultancy and fuel procurement firm Unified Energy Services LLC. Some are contracting power and gas even later into this decade to guard against near-term and longer-term shocks.