LNG Companies Upbeat Despite Economic Headwinds

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid concerns about a bloated market and headwinds for the global economy, companies working in the liquefied natural gas (LNG) sector are optimistic, with Australia's Woodside Energy Group (NYSE:WDS) (Perth, Australia) expecting a surge in sales volumes by the start of the next decade.

LNG emerged as a fuel of choice in 2022 when sanctions imposed on Russia for its invasion of Ukraine left a massive void in a European market that was heavily dependent on Russia for its piped-gas reserves. Since then, the United States has emerged as a key supplier, though the likes of Australia and Qatar are doing their own heavy lifting.

Australia-based Woodside Energy is working on projects at home and in the United States, the world leader in exports of LNG. In Australia, the company said it was about 80% complete with the first phase of its Scarborough LNG project, with first deliveries slated for 2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project report.

In the U.S. market, Woodside is working at a facility dubbed Louisiana LNG, announcing its final investment decision on the project in late April.

Once fully completed, the facility could deliver as much as 2.2 Bcf/d of gas in the liquid form. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.

"When announcing our decision to take forward Louisiana LNG, we forecast Woodside's annual portfolio sales volumes to be almost 50% higher in the 2030s than they are today, and annual net operating cash increasing to over US$8 billion in this period," Chairman Richard Goyder said. "This would represent a step-change in value creation and provide us with additional options to reward our shareholders."

Woodside in late April reported that first-quarter revenue of US$3.32 billion represented a 5% decline from the prior quarter, which the company blamed on lower production and lower commodity prices.

U.S. company Cheniere Energy Incorporated (Houston, Texas), which owns and operates the Sabine Pass LNG facility in Louisiana and the Corpus Christi export terminal in Texas, reported first quarter revenue of $5.4 billion, a 28% increase over year-ago levels.

"2025 is off to an outstanding start thanks to the Cheniere team's commitment to excellence across our operations, project execution and financial discipline," Jack Fusco, Cheniere's president and chief executive officer, said Thursday.

Market prices were suppressed for much of last year, though data show tailwinds for natural gas. The International Energy Agency, however, has warned that new LNG exports coming online over the next few years could saturate the market.

Shorter-term, headwinds from U.S. trade policies could undermine growth in the domestic energy sector. Further clues about the status of the LNG sector in the United States will come Tuesday when Venture Global, operator of the newly-launched Plaquemines export facility, releases its first quarter earnings.

Plaquemines, which received its first batch of feedgas in December, helped support an increase in LNG deliveries this year, securing the U.S. position as the top exporter. Feedgas running to export terminals, however, is suppressed due to regular seasonal maintenance on natural gas and other pipelines.

In its monthly market report for May, the U.S. Energy Information Administration (EIA) said it expects total LNG exports to average 15 Bcf/d this year, a 1 Bcf/d increase from last month's estimate.

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 200,000 current and future projects worth $17.8 Trillion (USD).