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US LNG gas demand hits record high on last day of the year
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US LNG gas demand hits record high on last day of the year
Dec 31, 2024 11:18 AM

HOUSTON, Dec 31 (Reuters) - 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 ( XOM ) being constructed on the

Texas coast with first gas due in late 2025 or early 2026.

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