In a significant development for the US energy sector, natural gas demand from LNG (liquefied natural gas) plants reached a record 15.2 billion cubic feet per day (bcfd) on the year’s last day. This milestone, reported by Curtis Williams from Houston, indicates a promising outlook for the LNG industry, bolstered by the initiation of two new gas-processing facilities.

Read also: Nuclear-Powered LNG Carriers: The Future of Zero-Emission Shipping?

The US is set to witness a further escalation in LNG gas demand, projected to rise to 17.8 bcfd next year. This growth will be driven by the commissioning of Venture Global LNG’s Plaquemines plant in Louisiana and the expansion of Cheniere Energy’s Corpus Christi Stage 3 in Texas.

The consistent surge in LNG demand is also anticipated to catalyze an uptick in natural gas production within the US, subsequently impacting prices at the Henry Hub, the country’s principal gas exchange located in Louisiana. Current gas prices saw an increase of 48 cents, reaching $3.94 per million cubic feet (mcf), reflecting dynamic market conditions.

As the world’s largest LNG exporter, the US plays a pivotal role in supplying to Europe and Asia, with exports and feedgas demand typically peaking during the cooler months when plant efficiency is enhanced.

Looking forward, US LNG gas demand is expected to escalate further to 20.3 bcfd by 2026, climbing to 24.2 bcfd by 2028, propelled by the anticipated commencement of the Golden Pass LNG project, a joint initiative by QatarEnergy and Exxon Mobil. This project is poised to begin operations on the Texas coast, with its first gas expected between late 2025 and early 2026.

Source: IndexBox Market Intelligence Platform