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Why is Asia paying five times more than America for natural gas?

U.S. export capacity crunch isolates global markets creating vast differences

A LNG tanker prepares to offload. Liquefied natural gas spot prices in Asia are nearly six times higher than U.S. prices   © Reuters

TOKYO -- It's a phenomena rarely seen in commodity markets. As natural gas prices skyrocket across the world, Europe and Asia are paying up to nearly six times more for natural gas than the U.S., as a lack of American liquefaction capacity fragments global markets.

On Tuesday in New York, front month contracts for Henry Hub gas futures closed above $5.88 per million BTUs, more than doubling in the year to date.

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