Liquefied Natural Gas (LNG) has become the single biggest driver of U.S. natural gas markets. The United States is already the world’s largest LNG exporter, and global demand continues to climb, particularly from Europe, which has leaned heavily on U.S. supply since 2022. Asia is also a vital long-term destination, with growth expected in the years to come.
LNG is natural gas cooled to minus 162°C, shrinking its volume 600 times so it can be shipped overseas. This process links U.S. producers directly to global buyers and ties domestic prices more tightly to international benchmarks. U.S. gas now competes with coal, renewables, nuclear, and pipeline imports on the global stage.
Source: Department of Energy
New Projects and Rising Capacity
To meet this demand, U.S. LNG capacity is expanding quickly. Several major projects are expected to come online by 2028, including:
- Plaquemines LNG Phase 2 (Louisiana)
- Corpus Christi Stage 3 (Texas)
- Golden Pass (Texas)
- Rio Grande Phase 1 (Texas)
- Port Arthur Phase 1 (Texas)
By the early 2030s, U.S. LNG exports could approach 28 billion cubic feet per day. Much of this growth will come from projects that have already reached Final Investment Decision (FID), the point where financing, contracts, and construction are secured. Another wave of projects is also close to FID, including CP2 LNG, Lake Charles LNG, Commonwealth LNG, Cameron Phase 2, and Sabine Pass Stage 5.
Global Demand and Domestic Prices
Export growth is not just a story for overseas buyers. It is reshaping U.S. gas markets at home. As LNG shipments grow, domestic prices are increasingly tied to global benchmarks such as Europe’s TTF and Asia’s JKM.
This means that a cold winter in Europe can lift U.S. LNG demand, tightening domestic supply and raising prices at home. In New England, where limited pipeline capacity forces reliance on imported gas, the volatility can be even more severe. In this way, weather and market conditions on the other side of the world can directly affect U.S. households and businesses.
Impacts from Canada and Mexico
Cross-border flows also shape U.S. balances. LNG Canada in Kitimat, British Columbia shipped its first cargoes in 2025, diverting more western Canadian supply to Asia instead of the U.S. market. At the same time, Mexico is building new LNG export facilities such as Energía Costa Azul in Baja California, which rely on U.S. pipeline gas as feedstock. Both developments reduce available supply for U.S. consumers and contribute to upward price pressure.
What to Expect Going Forward
The globalization of U.S. LNG markets is creating higher baseline prices and greater volatility for American consumers. Exports strengthen U.S. energy influence abroad and support domestic production, but they also tie U.S. households and businesses more closely to global supply shifts, weather events, and geopolitical developments.
For regions like New England, where infrastructure is already constrained, this can mean sharper spikes in heating and power costs during winter. Across the country, it highlights the importance of planning for a gas market that is increasingly global and more exposed to swings in international demand.
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