LNG feedgas demand has held steady at 13.8 billion cubic feet per day through June, up 8% year-over-year, providing a structural price floor for Henry Hub that didn't exist before the U.S. LNG export boom. The steady demand from liquefaction terminals absorbs approximately 14% of total U.S. dry gas production.
Freeport LNG returned to full 2.2 Bcf/d capacity in early June after completing planned maintenance, adding to the structural demand base. The facility had been operating at reduced rates since a May maintenance event that reduced feedgas demand by approximately 0.8 Bcf/d.
Cheniere's Corpus Christi Stage 3 expansion is in its commissioning phase, with feedgas nominations rising to 0.3 Bcf/d. The project is expected to reach full capacity of 1.5 Bcf/d by Q4 2026, which would add significant incremental demand to an already tight LNG market.
Global LNG prices remain elevated, with the JKM (Japan Korea Marker) at $12.50/mmBtu and TTF at $11.80/mmBtu, providing a wide arbitrage for U.S. exporters. The Henry Hub-JKM spread of approximately $9.30/mmBtu ensures that U.S. LNG cargoes remain competitive in Asian and European markets.
LNG export demand is a structural bullish factor that limits downside for Henry Hub. Even if storage remains elevated, the 13.8 Bcf/d of feedgas demand is irreplaceable and grows with each new liquefaction train. For procurement teams, this means Henry Hub below $3.00 is increasingly unlikely as LNG demand absorbs surplus. Plan your gas budget assuming a $3.00-$3.50 floor for the foreseeable future.