2025 a Record for U.S. LNG Offtake Agreements

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Port Arthur and Corpus Christi LNG facilities in Texas helped lift offtake agreements last year. The future is uncertain, however, as Japan restarts its nuclear energy program, displacing gas imports.

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2025 a Banner Year for Supply Agreements

The U.S. federal government said Tuesday that domestic LNG developers approached records for offtake agreements last year, though the future may be clouded by the restart of Japan's nuclear energy program.

The U.S. Energy Information Administration (EIA), part of the Department of Energy, reported Tuesday that U.S. producers of liquefied natural gas (LNG) signed the equivalent of 5.2 billion cubic feet per day (Bcf/d) in sales and purchase agreements last year, shy of the record set in 2022 at 7 Bcf/d.

Customers secured 1.4 Bcf/d from the second phase of the Port Arthur facility, the largest for any U.S. terminal. Phase 2 of the Rio Grande facility secured 1.2 Bcf/d, putting it at second place.

Rio Grande is still in the construction phase, with commercial operations slated to begin in 2030 from a facility operated by NextDecade. Led by Sempra Energy, Port Arthur would come online a year later.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more by viewing the related project reports.

The U.S. is the world leader in LNG exports, rivalling the likes of Australia and Qatar. The outbreak of war in the Middle East, however, may be upending trade flows as the Dutch Title Transfer Facility (TTF), the European benchmark for the wholesale price of natural gas, jumped 80% this week after Qatar shut in LNG production.

Demand Poles are Shifting

Europe may be leaning on the U.S. for more supplies as the conflict drags on. Flows may be changing elsewhere too as Japan relaunches its nuclear power program, more than a decade after the Fukushima Daichi meltdown.

With few natural resources of its own, Japan has relied heavily on foreign supplies for fossil fuels. In January, the U.S. subsidiary of Japanese power company JERA closed on an agreement with Williams and GEP Haynesville II, LLC to acquire 100% of their respective interests in the Haynesville Shale in western Louisiana.

Tapping some 200 undeveloped locations, JERA said it believes the assets in question can produce more than 500 million cubic feet of natural gas per day. JERA's portfolio also includes offtake agreements for LNG, with a long-term arrangement to secure 1.2 million tonnes per annum (MTPA) from the Cameron LNG facility under development.

Slated for completion by 2029, Cameron is designed for 6.75 MTPA from a floating liquefaction unit off the coast of Hackberry, Louisiana.

In February, Japan turned on parts of its Kashiwazaki-Kariwa nuclear power station. Analysis from the U.S. Energy Information Administration (EIA) finds the return of nuclear power will displace natural gas on the Japanese grid.

"As the reactor returns to full operations, the resulting increase in nuclear generation is likely to displace generation from fossil sources, mainly natural gas, which accounted for 33% of all Japan's electricity generation in 2024," the EIA stated.

In terms of LNG, nuclear power could displace as much as 1.3 MTPA.

Subscribers to Industrial Info's GMI Power Plant Database can learn more by viewing the related plant profile.

By the Numbers

• 33% of Japan's power came from natural gas
• 5.2 MTPA in U.S. LNG offtake agreements last year

Key Takeaways

• U.S. LNG sector is booming
• Demand centers are shifting in part due to war

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).