U.S. natural gas demand from LNG plants hit a record on Tuesday, the last day of the year, climbing to 15.2 billion cubic feed (bcf) in a sign of a strong year ahead from the startup of two new gas-processing plants, preliminary data from financial firm LSEG showed.
U.S. natural gas demand for LNG plants is forecast to rise to 17.8 bcfd next year with the commissioning of Venture Global LNG’s 20 million tones per annum (MTPA) Plaquemines plant in Louisiana and Cheniere Energy’s Corpus Christi Stage 3 expansion in Texas.
Demand for natural gas by LNG export plants could spur higher production in the U.S. and increase prices at the country’s main gas exchange in Louisiana, called Henry Hub, according to analysts. Gas prices were up 48 cents in midday trading on Tuesday, at $3.94 per million cubic feet (mcf), according to LSEG data.
The U.S. is the world’s largest exporter of the superchilled gas and a major supplier to Europe and Asia. LNG exports and feedgas demand also tend to be higher in the cooler months in the Northern Hemisphere as it improves the plants efficiency.
Tuesday is the third time in two weeks that U.S. LNG feedgas demand has crossed 15 bcfd but the first time it has gotten to 15.2 bcf, according to LSEG data.
In December, Venture Global and Cheniere announced first LNG from their expansion projects with Venture Global’s Plaquemines plant making its first shipment to Germany.
U.S. gas demand for LNG is expected to increase to 20.3 bcfd in 2026 as the new plants ramp up output, and climb to 24.2 bcfd in 2028 according to US EIA data. The gains will follow the start of Golden Pass LNG, a joint venture of QatarEnergy and Exxon Mobil being constructed on the Texas coast with first gas due in late 2025 or early 2026.
(Reporting by Curtis Williams in Houston; Editing by David Gregorio)