U.S. Liquefied Natural Gas Demand Soars

U.S. natural gas demand reached a record 15.2 billion cubic feet per day at the end of 2024, driven by increased LNG exports to Europe and Asia as they seek alternatives to Russian supplies. The U.S. is expected to further boost LNG demand to 17.8 bcfd in 2025, supported by new facilities like Venture Global's Plaquemines LNG and Cheniere Energy's expansion in Texas. Despite the rapid growth in demand, global LNG exports grew at the slowest rate since 2015, primarily due to delays in U.S. projects and sanctions impacting Russian facilities. By 2028, North America's LNG export capacity is projected to more than double to 24.4 bcfd, with significant contributions from ongoing projects in the U.S., Canada, and Mexico. This surge in production capacity could affect pricing at key exchanges like Henry Hub, which has already seen a price increase. Additionally, the conclusion of Russia's gas transmission agreement through Ukraine introduces further uncertainty in Europe's supply dynamics this winter.