US LNG Projects Face Competitiveness Threat as Gas Prices Surge

The rising cost of natural gas in the United States could make liquefied natural gas (LNG) projects in the country uncompetitive on the global market, according to the CEO of Fulcrum LNG, Jesus Bronchalo. Speaking at a panel discussion at Rice University's Baker Institute, Bronchalo warned that if domestic natural gas prices continue to climb, the US could lose its edge as an LNG producer.

Bronchalo highlighted that the US is already one of the most expensive places in the world to produce LNG. He noted that the Henry Hub benchmark, a key indicator of US gas prices, is likely to increase further, potentially making LNG exports from the country too costly to remain competitive.

Despite the high production costs, Joshua Lubarsky, president of maritime firm Seapath Group, pointed out that the US gas price dynamics can offer stability that is crucial for buyers. This stability could be a factor in maintaining demand for US LNG, even as prices rise.