LNG Demand to Reach 35 Bcf/d by 2035: Where Will the Gas Come From?

A new analysis by East Daley Analytics predicts that natural gas prices at the Henry Hub will reach $5 by 2031 due to the growing demand for liquefied natural gas (LNG) exports. The firm estimates that this demand will pull approximately 35 billion cubic feet of gas per day out of the U.S. supply pool by 2035. This development has significant implications for landowners in the Marcellus and Utica shale regions, who may be wondering where all this gas will come from.

The analysis focuses primarily on the Gulf Coast and Permian Basin, but it's the Marcellus-Utica audience that stands to gain or lose the most. The East Daley Note, published on August 18, lays out the numbers and projections, but raises more questions than answers about the sustainability of this growth.

With gas prices potentially reaching $5 by 2031, it's essential for landowners to understand the implications of this trend on their properties and investments. As the demand for LNG continues to rise, it will be crucial to identify new sources of supply to meet this growing demand.