U.S. liquefied natural gas (LNG) developers are pushing forward with over 90 million tonnes per annum (mtpa) of new export capacity this year, undeterred by steel tariffs and trade war uncertainty, as they bet on long-term global demand for American gas.
Key Projects Advancing in 2025:
- Cheniere Energy (LNG.N): Plans 5 mtpa Corpus Christi expansion (Trains 8 & 9), with FERC permit secured.
- Venture Global (VG.N): Aims for 28 mtpa CP2 FID by mid-2025—the largest single U.S. LNG plant.
- Energy Transfer (ET.N) & Commonwealth LNG: Greenfield projects in Louisiana (16.5 mtpa and 9.5 mtpa).
- Woodside Energy (WDS.AX): Approved 12 mtpa Louisiana LNG, with Saudi Aramco potentially taking a stake.
Trade War Headwinds:
- 25% steel/aluminum tariffs could raise costs (e.g., CP2 by ~1%), but developers are locking in supply deals.
- Cost Overruns: Existing projects like Port Arthur (+18%) and Rio Grande (+29%) face inflation pressures.
Market Outlook:
- U.S. LNG capacity (currently 91.3 mtpa) could triple by 2030 if all planned projects proceed.
- Demand Resilience: Buyers in Europe and Asia seek long-term contracts, despite tariff risks.
U.S. LNG Projects Charge Ahead Despite Trade War Risks, Eyeing Global Gas Dominance