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U.S. Gas Glut Fails to Reach Factories

WSJ.com: Markets •
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American manufacturers are struggling to secure natural gas despite a nationwide surplus, as pipeline operators curtailed or restricted gas flows to factories more than 40 times last year, according to a trade group. This disconnect between abundant supply and restricted access highlights a critical infrastructure bottleneck affecting industrial production.

The pipeline restrictions have created a paradox where U.S. factories cannot access domestic natural gas supplies even as the country exports record volumes. Trade associations representing manufacturers report that these curtailments occur without warning and often during peak production periods, forcing companies to halt operations or seek more expensive alternatives. The frequency of these disruptions has increased from previous years, suggesting a growing systemic problem.

Industry experts warn that without infrastructure improvements, these supply interruptions will continue to hamper manufacturing competitiveness. The situation underscores the gap between America's energy abundance and its ability to deliver that energy to industrial users who need it most. Pipeline operators cite various reasons for restrictions, including maintenance, capacity constraints, and regulatory compliance, but manufacturers argue these disruptions impose significant costs and threaten their ability to compete globally.