U.S. LNG export capacity is entering a new expansion phase that will structurally increase domestic natural gas demand. Plaquemines Phase 2 and Corpus Christi Stage 3 are both in commissioning, adding approximately 3.5 bcf/d of new liquefaction capacity.
LNG feed gas demand currently averages ~13 bcf/d, but this is projected to rise to ~15 bcf/d by late 2027 as new trains reach full operational capacity. The increase represents roughly 15% of current U.S. gas production.
The LNG demand growth is a structural bullish factor for Henry Hub prices over the 2027-2028 horizon. However, the current record production levels are more than sufficient to meet both domestic demand and LNG export requirements in the near term.
European and Asian LNG prices are significantly above Henry Hub, providing strong economic incentive for exports. TTF natural gas at €46.77/MWh ($16.70/mmBtu) means U.S. LNG exporters are capturing substantial margins, encouraging maximum plant utilization.
LNG exports are a medium-term bullish signal for gas prices. While current oversupply caps near-term upside, the structural demand increase from LNG trains in 2027-2028 suggests forward pricing below $3.00 may not persist. Consider longer-term hedges at $3.00 or below for 2028 exposure.