While 2024 might not have been the most dynamic market for U.S. projects, the outlook for 2025 is markedly more promising.

U.S. LNG exports, according to Energy Information Administration data, averaged around 12 Bcf/d in 2024, largely unchanged from the previous year. But it is expected LNG exports will rise by 15% in 2025 to as much or more than 14 Bcf/d.

This projected growth is expected to come from new export capacity scheduled to come online next year, notably from the Plaquemines LNG and Corpus Christi LNG Stage 3 projects.

Plaquemines LNG in late November received Federal Energy Regulatory Commission approval to begin introducing hazardous fluids to its Liquefaction Block 1, which includes the first two trains. The Corpus Christi LNG Stage 3 project also obtained FERC approval in late November. The regulatory approvals represent a crucial milestone, allowing these facilities to begin liquefying natural gas for export.

According to a recent report from the International Energy Agency, the U.S., Canada and Mexico are expected to contribute to roughly 85% of global LNG supply growth in 2025.

In fact, the overall LNG landscape could shift markedly next year as supply is projected to rise by nearly 6% as several major projects come online. The U.S. will lead the charge in LNG supply growth, particularly in 2025, as it expands to meet growing demand in Europe and Asia.

In addition to Plaquemines LNG Phase 1 and Cheniere Energy's Corpus Christi Stage 3 expansion, another important development is Freeport LNG, which despite not being a new project, is set to increase exports in 2025. The facility, which experienced major outages over the last two to three years, has received and improvements in operations and capacity are expected to boost output by 10%.

Further, the Golden Pass LNG project, a joint venture between QatarEnergy and ExxonMobil, is expected to add supply by late next year or early 2026.

Canada and Mexico are also stepping up LNG. Projects in both countries are well-positioned to serve Asian markets due to shorter and more direct shipping routes compared to U.S. Gulf Coast projects, which are directed more toward Europe.

LNG Canada, with a capacity of 19 billion cubic meters/year, is set to begin operations in mid-2025, which will help meet the growing demand from Pacific markets.

In Mexico, New Fortress Energy's Fast LNG facility offshore Altamira, which has a capacity of 1.9 bcm/year, exported its first LNG cargo over the summer and is expected to continue to increase output through 2025.

While 2024 may have been a year of slower growth for LNG, 2025 is shaping up to be a year of considerable expansion, with the US playing a pivotal role in meeting global natural gas demand.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Alan Lammey, alammey@opisnet.com; Editing Mei-Hwen Wong, wong@opisnet.com and Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

January 02, 2025 13:12 ET (18:12 GMT)

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