A liquefied natural gas tanker is moored at aN LNG berth in Kawasaki, Japan.
AFP via Getty Images
The U.S. has plenty of natural gas. It was burned off for many years in the Permian basin, when liquid crude was favored. But if you freeze the gas, it turns into a liquefied state called LNG, which can be shipped readily across oceans and provide sources of electrical power or commercial heating that are much cleaner than burning coal.
The war in Ukraine led to Russia cutting off gas supplies to Europe. The U.S. stepped in and shipped their LNG which saved Europe.
The war in Iran led to a blockade of 20% of world supplies of oil and LNG shipped through the Strait of Hormuz. China and Asia-Pacific countries have suffered, In Japan, coal-fired power in April surged 11%, the largest jump in at least a year, as gas-fired power dropped 13%. But once again, LNG from the U.S. has raised its hand to help. Exports to Asia grew from 1 million metric tons in February to 1.75 million metric tons in April, as reported by Markedium’s Post.
LNG Exports From U.S.
Before 2016, the U.S. was exporting zero LNG. It was against the law, as in previous decades the U.S. had been seriously short on production of natural gas. But the country was saved by the shale revolution, which took off in 2003. The ingredients for success of the shale revolution are well documented. But federal law was changed, and LNG began its own revolution in 2016, and this story was artfully told in 2024.
LNG exports from the U.S. have grown dramatically and steadily since 2016. The rate of increase is a stunning 38% year-over-year. The total volume of U.S. exports is approaching 20 Bcfd (billion cubic feet per day). This compares with total natural gas production of 110 Bcfd in the U.S.
The last couple of years are predictions not measurements.
EIA
“LNG shipments this year are actually up about 40% over the same period last year,” said Port of Corpus Christi CEO Kent Britton. While some of the growth is a direct response to the Iran war, an increasing global demand for energy is behind much of the anticipated LNG exports in the chart.
New construction is occurring along the gulf Coast. New terminals being commissioned or under construction are shown by different colors in the figure.
LNG export terminals in U.S.
EIA
The frenzied openings of LNG terminals are quite remarkable, given the last ten years of solid growth in this energy space. The details have been spelled out by EIA:
“Current U.S. peak export capacity is 18.3 Bcf/d. In 2026, Corpus Christi Stage 3 will start up trains 5–7 (0.6 Bcf/d combined), and Golden Pass LNG will start up its first two trains (1.4 Bcf/d). We expect Port Arthur LNG Phase 1 (1.6 Bcf/d), Rio Grande LNG Trains 1 & 2 (1.4 Bcf/d), and the final train of Golden Pass LNG (0.7 Bcf/d) will begin exports next year. In addition to these new terminals, Plaquemines LNG and Elba Island LNG received DOE approval in March and April 2026 to increase their permitted exports by 0.5 Bcf/d and 0.1 Bcf/d, respectively.”
Where Do U.S. Exports Go?
The news has been saying repeatedly that southeast Asia is the main growth destination for U.S. LNG. But it’s not the case. Exports to Europe surged in 2025 to 10.3 Bcfd, up from 6.3 Bcfd in 2024. Europe received 68% of LNG exports.
Exports to Asia fell to 2.5 Bcfd in 2025 from 4.0 Bcfd in 2024, but this was only 16% of total exports. China received zero exports in 2025, compared with 0.6 Bcfd in 2024, due to tariff and trade negotiations.
Number 1 World Exporter.
The new construction of LNG terminals has propelled the U.S. to number 1 export capacity of LNG. As of September 2025, the U.S. enabled 102.3, Australia 81.8, and Qatar 77.1 (all units are million metric tons per year.)
Investment Risks.
LNG has been a huge success story for the U.S. But what about the future? The war in Iran has exposed the risk of interrupted supplies of LNG from the Middle East. But this seems short-term, perhaps lasting a year or two. LNG terminals are costly, upwards of a billion dollars, and investments are long-term, 10-20 years.
And LNG buyers may choose alternative countries like Canada or Algeria. Or countries may turn away from LNG in favor of renewable energies, like many countries in Europe have tried to do.
Developing countries in southeast Asia, and emerging markets like India, Pakistan, and Bangladesh, are having their LNG supplies curtailed by the Iran war. If these countries decide to go back to coal, or go forward to cheaper Chinese renewables (like Pakistan has done) their demand for LNG may fall. In a worst case, this may lead to stranded LNG terminals in the U.S.