U.S. Natural Gas Production Under Pressure, But Still at the Top

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

Summary

The United States continues to set records in its natural gas sector. Recent data, however, show the sector is strained by lower production and higher demand during a continent-wide heat wave.

Demand Up, Production Down

The U.S. natural gas market is under pressure from demand strains and lower production, though it remains a top performer after setting export records last year, data show.

With much of the continental United States under some form of heat advisory, Industrial Info in its NATGAS Today report for Wednesday showed power demand increased 8.5% over the last five days to reach 52.3 billion cubic feet.

Production, meanwhile, is on the decline due to a lack of pipeline flows in Texas and Louisiana. The amount of feed gas running to the operational export terminals for liquefied natural gas (LNG) is low as well. Maintenance issues at the Freeport LNG terminal in Texas and Sabine Pass in Louisiana are curbing feed gas levels, data show.

Of those, Sabine Pass, operated by Cheniere Energy, is the largest by volume, with a peak processing capacity of 4.5 billion cubic feet per day (Bcf/d). Sabine Pass is among the Gulf Coast facilities slated for expansion. According to Industrial Info Resources data, there are 87 active capital LNG projects in the U.S., with a total investment value of more than $368 billion.

Cheniere last week awarded a contract to upstream services provider Baker Hughes to supply liquefaction equipment for the seventh train at Sabine Pass. Baker Hughes said its work at Sabine Pass could boost output by around 20%. For more on that, see July 14, 2026, article - Expansions to Lift U.S. LNG Potential.

The U.S. Department of Energy, for its part, is expecting total U.S. LNG exports to increase by 8.1% next year, securing the position as the global leader in deliveries of the super-cooled gas.

The Energy Information Administration (EIA), the statistical arm of the Energy Department, said LNG exports from the United States increased 26% annually to 2025, the largest increase among global LNG producers.

U.S. LNG a Safety Net for Energy Security

Those exports continue to support global energy security. For Europe, EIA data show imports increased by around 0.6 Bcf/d last year. The bloc is already under strain because of sanctions imposed on legacy exporter Russia in response to the war in Ukraine.

The United States emerged as a global leader in LNG exports in 2022, just as war-related sanctions were crimping supplies to Europe. European media outlets on Tuesday, however, reported that the bloc in June got 25% of its power from solar resources, compared to 15% for natural gas.

Elsewhere, China, the second-largest economy in the world behind the United States, saw its imports decline 4% annually to 2025 as the nation expanded its domestic midstream infrastructure to draw on its own natural gas reserves.

The EIA in its report added that global LNG volumes are curtailed by conflict raging in the Middle East. Qatar, the second-largest exporter behind the United States, is curtailed because of drone strikes on its Ras Laffan North and Ras Laffan South facilities early this year.

"Until LNG flows through the strait return to historical norms, Asian buyers, who in 2025 imported over 80% of Qatari volumes, are competing on the global spot market with European buyers seeking to refill storage inventories, which are currently at a deficit to the five-year average," the EIA added.

The government of Qatar during the weekend suspending maritime activity until further notice due to renewed tensions in and around the Persian Gulf.

By the Numbers

• 20% increase in Sabine Pass LNG export potential possible
• 4% decline in natural gas demand from China

Key Takeaways

• U.S. still a gas superpower despite recent strains.
• U.S.-sourced LNG is providing a buffer during war time.

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, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).