Permian producers hit an all-time low of -$9.60 per MMBtu on April 24, with extraction outpacing pipeline and export capacity and forcing sellers to pay buyers to take natural gas. Benchmark futures in the U.S. remain below $3, roughly one-sixth of Asian and European levels, creating a pronounced domestic supply surplus.

Dow Inc.’s Chief Operating Officer noted that abundant, low-cost natural gas is powering a ramp-up in American chemical production, reducing feedstock expenses and improving profit margins. This cost advantage reinforces the company’s competitive position in chemicals, fertilizers and other gas-dependent industrial segments.

In response to constrained European supplies and surging global prices, Dow is leveraging cheap U.S. gas to capture new contracts in Europe and support energy-intensive facilities. Additionally, low power prices driven by plentiful gas are accelerating the buildout of data centers, underpinning demand for Dow’s specialty materials.