HOUSTON, Sept 16 (Reuters) - Top energy executives and

ministers will meet in Houston this week for the annual Gastech

conference, with U.S. markets in focus as booming liquefied

natural gas (LNG) exports help wean Europe off Russian gas and

as Asia moves away from coal.

The U.S., once an importer of LNG, has surpassed Qatar as

the world's top exporter, with new technology allowing America's

shale producers to tap massive reserves. Both countries have

major LNG expansion projects underway, playing greater

importance in global markets from Europe to Asia.

The conference comes to the U.S. for the first time since

2019 as the country has also become the world's biggest natural

gas producer. U.S. natural gas production grew 4% last year to

125 billion cubic feet per day (Bcf/d). Exports of the

super-cooled gas jumped 12% to 11.9 Bcf/d.

Gastech expects to host some 50,000 attendees from 125

countries, with sessions on everything from gas markets and

decarbonization to Artificial Intelligence (AI) and energy

security.

Surging supply has pushed U.S. gas prices to

multi-decade lows

this year, hampering producers but benefiting consumers and

LNG firms

using record amounts

of gas.

By 2026, U.S. LNG exports should be double their 2024

levels, with annual feed gas requirements averaging 19.7 Bcf/d

in two years' time, said Matthew Palmer, executive director at

S&P Global Commodity Insights.

"Natural gas prices will be significantly higher in

2025" as new LNG export projects boost demand, said Jim Simpson,

CEO of energy research firm, East Daley Analytics.

In the U.S., new export capacity growth will support

Europe's commitment to divest away from Russian gas following

its invasion of Ukraine, while offering Asian buyers a greener

option for power generation.

Venture Global, whose CEO, Mike Sabel will speak to

attendees about the role of LNG in Europe's energy supply mix,

is among those firms. The company's Plaquemines LNG export

facility in Louisiana will have an export capacity of up to 20

million metric tonnes per year, and is expected to begin

operations this year.

The U.S. exported some 7.48 million metric tons of

LNG in August

, roughly 43% of which went to Asia, according to LSEG data.

GAS PRODUCERS BID THEIR TIME

U.S. shale gas firms are betting on new LNG terminals to

boost their market and prices. Poor returns have forced some to

cut production this year.

"The next nine months have more chance of being

over-supplied than under-supplied because the LNG projects do

not arrive in force until late next year," said the president of

Aegis Hedging, Matt Marshall.

U.S. producers generally need Henry Hub natural gas

prices above $3 per million British thermals units (mmBtu) to

generate cash flow for more drilling, said S&P Global's Palmer.

Gas prices are currently around $2.33 per mmBtu and have only

traded above $3 a few times this year.

Henry Hub gas prices are expected to average $2.19 per

mmBtu this year, the U.S. Energy Information Administration

(EIA) said this week in a monthly report, lowering its estimate

by 11 cents from the prior forecast.

"The overall story here is that a producer of natural

gas should not expect this market to turn outrageously bullish

with the turn of the year. It is going to take time and this

market is vulnerable to lower prices really until next summer,"

said Aegis' Marshall.

Major U.S. producers, including Chesapeake and EQT

were preparing to curtail production and defer well

completions in the second half of 2024 in August, after prices

sank nearly 40% over the two months prior.

As those new LNG projects come online and take in more shale

gas, prices are anticipated to improve. The U.S. EIA is

forecasting an average Henry Hub price of $3.14 next year.

"Our expectation is that as LNG exports increase, the

market will return to equilibrium, moving Henry Hub into the

$3-4/MMBtu range that will support an increase in production,"

said Marshall.