US LNG Exports Poised to Fill Qatar Supply Gap
The US is poised to fill the global liquefied natural gas (LNG) demand gap left by Qatar's reduced exports following an Iranian missile attack in March. Cheniere Energy completed Stage 3 of its Corpus Christi LNG facility on August 28, which can produce 3.1 billion cubic feet per day (Bcf/d). This addition makes the facility the second-largest LNG producer in the US behind Sabine Pass LNG in Louisiana, with a nominal capacity of 3.6 Bcf/d.
The Federal Energy Regulatory Commission reports that US online export capacity totals to 15.23 Bcf/d, making it the largest exporter globally. However, this is still short of filling the supply gap left by Qatar's reduced exports. To address this shortage, a massive total additional capacity of 25.33 Bcf/d is permitted and under construction by companies like Cheniere, ExxonMobil, Venture Global, Woodside, NextDecade, and Sempra.
The US natural gas industry is uniquely positioned to meet the growing global demand for LNG due to its abundant supply and innovative production methods. The Henry Hub price for domestic natural gas has remained depressed at around $3.00 per MMBtu, allowing producers to maintain national gas production levels and keep them rising despite a relatively low number of active drilling rigs.