Henry Hub Prices Fail to Reflect Surge in US LNG Exports

US liquefied natural gas (LNG) exports have surged by 23% this year, but despite this significant increase in output, benchmark Henry Hub prices remain stuck below $3.

This anomaly has left many wondering why the rise in LNG production hasn't had a more substantial impact on domestic natural gas prices. At least one reason is that LNG feed gas production has topped 19 billion cubic feet per day (Bcf/d), and storage levels are above the five-year average, leaving little pressure to drive up prices.

Henry Hub prices have been largely unaffected by the increase in LNG exports this year. In contrast, the Japan Korea Marker (JKM) price for Asian LNG has risen significantly, reflecting strong demand from Asian markets.