New England is importing expensive Liquid Natural Gas (LNG) from Russia instead of buying it cheaply from the US.
This is especially peculiar since the US is the #1 exporter of LNG in the world.
There’s only one possible answer: government interference in the market. There’s no other reason to buy more expensive LNG and import it from Russia (!).
As I’ve always told my kids: if you want to see people behaving economically irrationally, look for government meddling.
In this case, the problem is political obstacles driven by environmental groups.
They won’t let cheap LNG be shipped in from Pennsylvania (!). So here it comes from Russia.
Priceless.
Source: Boston Herald