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Record U.S. LNG Demand Signals Strong Growth Ahead

HOUSTON (Reuters) – On the last day of the year, U.S. liquefied natural gas (LNG) demand from processing plants reached an unprecedented level of 15.2 billion cubic feet (bcf), according to preliminary figures from financial firm LSEG. This surge indicates a robust outlook for the industry, bolstered by the upcoming launch of two significant gas-processing facilities.

Forecasts suggest that the U.S. natural gas demand dedicated to LNG processing is poised to increase further, expected to hit 17.8 billion cubic feet per day (bcfd) in the upcoming year. This anticipated growth is largely attributed to the commissioning of the Plaquemines LNG plant in Louisiana, which will have a capacity of 20 million tonnes per annum (MTPA), and the expansion of Cheniere Energy’s Corpus Christi facility in Texas.

As demand for natural gas from LNG export plants rises, analysts predict it could lead to higher production rates across the U.S., potentially driving up prices at the Henry Hub, the primary gas exchange in Louisiana. Recent trading data showed gas prices climbing by 48 cents to reach $3.94 per million cubic feet (mcf) on the Tuesday mentioned.

The United States stands as the foremost exporter of superchilled gas, serving as a critical supplier to markets in Europe and Asia. Additionally, LNG export and feedgas demand traditionally peaks during the cooler months in the Northern Hemisphere, enhancing plant efficiency.

This milestone marks the third time in a fortnight that U.S. LNG feedgas demand has surpassed the 15 bcfd mark, with the latest figure being the first to break through to 15.2 bcf, as reported by LSEG.

In recent updates, both Venture Global and Cheniere celebrated their first LNG shipments from their respective expansion projects, with Venture Global’s Plaquemines plant making its inaugural delivery to Germany this December.

Looking ahead, U.S. gas demand for LNG is projected to escalate to 20.3 bcfd by 2026 as the new plants begin to increase production levels, with expectations of reaching 24.2 bcfd by 2028, according to data from the U.S. Energy Information Administration (EIA). This growth trajectory will coincide with the startup of the Golden Pass LNG project, a collaboration between QatarEnergy and Exxon Mobil, which is currently under construction on the Texas coastline, with the first gas anticipated in late 2025 or early 2026.

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