Written by Curtis Williams
HOUSTON (Reuters) – U.S. demand from liquefied natural gas plants hit a record high on Tuesday, the last day of the year, jumping to 15.2 billion cubic feet of feedstock in a sign of a strong year ahead after two new gas processing plants came online. Preliminary data from the financial company LSEG showed.
U.S. natural gas demand for LNG plants is expected to rise to 17.8 Bcf next year with the commissioning of Venture Global LNG's 20 million tons per annum (MTPA) Plaquemines plant in Louisiana and the company's Corpus Christi Phase 3 expansion. Cheniere Energy (NYSE:) in Texas.
Demand for natural gas through LNG export plants could lead to increased production in the United States and higher prices on the country's main gas exchange in Louisiana, called the Henry Hub, according to analysts. Gas prices rose 48 cents in midday trading on Tuesday, at $3.94 per million cubic feet, according to LSEG data.
The United States is the world's largest exporter of cryogenic gas and a major supplier to Europe and Asia. LNG exports and feed gas demand also tend to rise in the colder months in the Northern Hemisphere as this improves terminal efficiency.
Tuesday marked the third time in two weeks that U.S. LNG demand exceeded 15 billion cubic feet per day, but the first time it reached 15.2 billion cubic feet, according to LSEG data.
In December, Venture Global and Cheniere announced the first LNG from their expansion projects with Venture Global's Plaquemines plant shipping its first cargo to Germany.
US demand for liquefied natural gas is expected to rise to 20.3 billion cubic feet per day in 2026 with increased production from new stations, then rise to 24.2 billion cubic feet per day in 2028, according to data from the US Energy Information Administration. The gains will come after the start of the Golden Pass LNG project, a joint venture between Qatar Energy and Qatar Energy Exxon Mobil (NYSE:) is being built on the Texas coast and is scheduled for first gas in late 2025 or early 2026.
