Record US LNG Shipments May Be Cursed by Rising Prices

US LNG producers have shipped out record volumes of natural gas so far in 2026, but rising global prices may soon curb demand from cost-sensitive buyers. Key forward gas and LNG prices in Europe and Asia have climbed to their highest in more than three years.

The ongoing US and Israeli war with Iran has disrupted freight traffic in the Persian Gulf and cut LNG flows from key exporter Qatar by over 60% from last year, according to Kpler. This has opened the door to higher prices and record US cargoes.

However, reduced Qatari shipments have tightened markets, but exporters may soon face softer demand as high cargo costs and a seasonal slowdown in gas consumption prompt buyers to delay purchases.