Prices have skyrocketed in Southern California and the region, as natural gas supplies increase in the Northeast and other regions.
But the price of natural gas is still very much in the red.CNNMoney’s John Santucci and John Guglielmi report on what’s happening in the energy sector.
The U.S. Energy Information Administration said Tuesday that natural gas has become more expensive in the U.A.E. since the beginning of the year.
The price index for natural gas fell 2.4 percent in April to $1.09 per million British thermal units, according to the data provider.
It was last at $1 in May and was down 0.9 percent from April.
Gas prices were a factor in the release of a report by the International Energy Agency on Tuesday that said prices in the region could fall by as much as 3 percent by 2021 if gas supply contracts don’t hold up.
The report also said the United States could experience an economic slowdown if supplies aren’t renewed.
The IEA said the U and other countries must make it a priority to ramp up their production of natural-gas liquids as quickly as possible and reduce their reliance on imported oil.
The agency said in a statement that “the IEA expects to see a further rise in global supply from 2021-22.”
The United States has been exporting liquefied natural gas to the European Union and other nations since 2012.
The report said U.K. Natural Gas will become the world’s second-largest supplier of liquefaction gas in 2020, after Japan.
Natural gas production will be the largest in the world in 2020 and the largest natural-resource sector in the country in 2020.
It will be one of the largest export markets in Europe in 2021.
The country is currently exporting liquified natural gas only to countries in the European and Russian energy blocs.