Rising Prices Threaten Demand for US LNG Exports
US liquefied natural gas (LNG) producers shipped record volumes of fuel in the first seven months of this year, but high prices may threaten demand. According to data from Kpler, US companies exported over 73 million tons of LNG from January through July 2026, a 23% increase from the same period last year.
However, forward prices for natural gas and LNG in Europe and Asia have risen to their highest levels in more than three years. LSEG estimates that the forward price of liquefied gas deliveries to Asia in October, November, and December could exceed $22 per million British thermal units (MMBtu).
Gas consumption in Asia typically declines after the summer months as cooling needs decrease, which may lead buyers like Japan, China, and South Korea to postpone new purchases. In Europe, benchmark gas prices at the Dutch trading hub are expected to range from $21.50 to $22.50 per MMBtu from October through December.
Despite high prices, gas demand in Europe is showing signs of weakening due to increased renewable energy generation and households switching to electric heating. Energy companies will need to replenish reserves before demand rises during the heating season.