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Released August 27, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land,
Texas)--Activity in the U.S. liquefied natural gas (LNG) sector kicked into overdrive, with Trafigura (Singapore) tapping U.S. supplies for a deal with South Korea and the federal government greenlighting new export options.
Indexed to Henry Hub, the U.S. benchmark for the price of natural gas, Trafigura said Tuesday it signed a 10-year agreement to deliver an unspecified amount of LNG to Korea Gas Corporation (KOGAS) (Daegu, South Korea). Supplies would come in part from Cheniere Energy Incorporated (Houston, Texas), the largest exporter of LNG in North America.
"By leveraging our offtakes from U.S. LNG companies and our global portfolio, we can provide KOGAS with the reliable energy supply that South Korea's economy demands," Richard Holtum, the chief executive officer at Trafigura, said in a statement Tuesday.
South Korea and the United States recently unveiled preliminary terms of a trade arrangement that called for a 15% blanket tariff on South Korean imports to the U.S. economy. U.S. President Donald Trump had threatened tariffs as high as 25%, which would be damaging to South Korea's export-dependent economy.
Trump said South Korea could invest $350 million in the U.S. economy and buy some $100 billion worth of LNG. South Korea has no international oil and gas pipelines, so its maritime trade arteries are essential for its economy.
The United States, meanwhile, had established itself as the world leader in LNG exports before Trump returned to office in January, though the president is eager for more. On Monday, the Federal Energy Regulatory Commission (FERC) signed off on the construction schedule for the Texas LNG facility, led by Glenfarne.
Glenfarne is targeting a final investment decision for Texas LNG, located in the Port of Brownsville, Texas, by the end of the year.
If completed as expected, it would be able to handle about 4 million tons of LNG exports annually, or about 195 billion cubic feet.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Feed gas commitments could nonetheless lead to supply-side pressures in the U.S. market. LNG exports are on pace for a 6.6% year-on-year increase to 2026, while total U.S. natural gas production declines by nearly 1% by next year.
Still, though, the LNG commitments keep coming. Last week, U.S. Energy Secretary Chris Wright gave Energy Transfer LP (Dallas, Texas) more time to ship LNG from its facility in Lake Charles, Louisiana, to countries that don't have a free trade agreement with the United States.
"On the heels of President Trump's historic trade negotiations, demand for secure, reliable American LNG is surging," Wright said.
Data from IIR Energy show feed gas to the eight operational LNG terminals accounts for about 14% of total U.S. natural gas supplies, about 2% higher than year-ago levels. Total inland gas production is steady at around 107 billion cubic feet per day (Bcf/d).
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).
Indexed to Henry Hub, the U.S. benchmark for the price of natural gas, Trafigura said Tuesday it signed a 10-year agreement to deliver an unspecified amount of LNG to Korea Gas Corporation (KOGAS) (Daegu, South Korea). Supplies would come in part from Cheniere Energy Incorporated (Houston, Texas), the largest exporter of LNG in North America.
"By leveraging our offtakes from U.S. LNG companies and our global portfolio, we can provide KOGAS with the reliable energy supply that South Korea's economy demands," Richard Holtum, the chief executive officer at Trafigura, said in a statement Tuesday.
South Korea and the United States recently unveiled preliminary terms of a trade arrangement that called for a 15% blanket tariff on South Korean imports to the U.S. economy. U.S. President Donald Trump had threatened tariffs as high as 25%, which would be damaging to South Korea's export-dependent economy.
Trump said South Korea could invest $350 million in the U.S. economy and buy some $100 billion worth of LNG. South Korea has no international oil and gas pipelines, so its maritime trade arteries are essential for its economy.
The United States, meanwhile, had established itself as the world leader in LNG exports before Trump returned to office in January, though the president is eager for more. On Monday, the Federal Energy Regulatory Commission (FERC) signed off on the construction schedule for the Texas LNG facility, led by Glenfarne.
Glenfarne is targeting a final investment decision for Texas LNG, located in the Port of Brownsville, Texas, by the end of the year.
If completed as expected, it would be able to handle about 4 million tons of LNG exports annually, or about 195 billion cubic feet.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Feed gas commitments could nonetheless lead to supply-side pressures in the U.S. market. LNG exports are on pace for a 6.6% year-on-year increase to 2026, while total U.S. natural gas production declines by nearly 1% by next year.
Still, though, the LNG commitments keep coming. Last week, U.S. Energy Secretary Chris Wright gave Energy Transfer LP (Dallas, Texas) more time to ship LNG from its facility in Lake Charles, Louisiana, to countries that don't have a free trade agreement with the United States.
"On the heels of President Trump's historic trade negotiations, demand for secure, reliable American LNG is surging," Wright said.
Data from IIR Energy show feed gas to the eight operational LNG terminals accounts for about 14% of total U.S. natural gas supplies, about 2% higher than year-ago levels. Total inland gas production is steady at around 107 billion cubic feet per day (Bcf/d).
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).
