Record Demand for U.S. Natural Gas: LNG Export Drives the Market

The US natural gas market recorded a remarkable milestone on the last day of the year: the demand for liquefied natural gas (LNG) facilities reached a peak of 15.2 billion cubic feet. This indicates a promising upcoming year, due to the start of two new gas processing plants, according to preliminary data from the financial company LSEG. Forecasts for next year predict the demand to rise to 17.8 billion cubic feet per day. This is driven by the commissioning of the Plaquemines facility by Venture Global LNG in Louisiana and the Corpus Christi Stage 3 expansion by Cheniere Energy in Texas. According to analysts, the increased demand from LNG export facilities could drive US gas production and cause prices at the Henry Hub, the major gas market in Louisiana, to soar. Already on Tuesday, gas prices made a significant leap with an increase of 48 cents to $3.94 per million cubic feet. As the world's largest exporter of deep-frozen natural gas, the US is a key supplier to Europe and Asia. Traditionally, LNG exports and demand for feed gas are higher in the cooler months of the northern hemisphere, which enhances facility efficiency. Tuesday marked the third time within two weeks that the demand for LNG feed gas in the US exceeded the threshold of 15 billion cubic feet per day. For the first time, the record level of 15.2 billion was reached. In December, Venture Global and Cheniere reported the first LNG deliveries from their expansion projects. Venture Global sent its first shipment from the Plaquemines facility to Germany. Further demand increases to up to 20.3 billion cubic feet per day in 2026 and 24.2 billion in 2028 are expected in the coming years. The growth will be fueled by the start of Golden Pass LNG, a joint project by QatarEnergy and Exxon Mobil, which is being developed on the Texas coast and plans its first gas delivery for the end of 2025 or early 2026.