U.S. Natural Gas Sector Under Short-Term Pressure

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. natural gas production volumes remain suppressed relative to August levels, while some of the terminals for exports of liquefied natural gas (LNG) underperformed, data show.

Shale natural gas production in the Lower 48 states ended last week at about 106 billion cubic feet per day (Bcf/d), an improvement over year-ago levels, but about 0.5 Bcf/d below August levels due to ongoing pipeline maintenance.

Declines were apparent largely in West Virginia, which hosts portions of the Appalachian Basin. Combined with the Haynesville play, the Appalachia Basin is expected to be among the few to show any meaningful production gains by next year, U.S. federal data show.

Shale-focused Enterprise Products Partners (Houston, Texas) was among those who reported a strong operational performance during the second quarter. Volumes from Gulf Coast basins, including Haynesville, led to record production for the company.

On Friday, however, Hess Midstream (Houston) revised its guidance, saying full-year, gas-gathering volumes should average between 455 million and 465 million cubic feet per day, while gas processing is expected to average between 440 million and 450 million cubic feet per day.

That's 4% and 3.3% lower, respectively, than estimates from the second quarter. Hess Midstream on Friday attributed the decline to inclement weather and maintenance.

As regional natural gas faces headwinds, data show the domestic LNG sector is down as well. Last week, feed gas to the Calcasieu Pass averaged around 1.3 billion cubic feet per day last week, down from around 1.7 Bcf/d at the end of August. Volumes are down due to maintenance at an offshore power station.

Subscribers to IIR Energy's Breaking Energy News can learn more from the September 15, 2025, article - Calcasieu Pass LNG Feedgas Down Over 20% in September.

Elsewhere, data from IIR Energy show feed gas volumes to the Corpus Christi facility declined by about 200 million cubic feet per day last week to average about 15.9 Bcf/d, though there's been no reported maintenance at the terminal.

The U.S. remains the top supplier of natural gas and LNG exports, though the industry may be facing pressures. Total LNG exports are on pace to increase by about 6% by next year, while total U.S. natural gas production falls marginally by about a quarter percent, compared to 2025 levels.

While gas production could be supported by higher market prices, the string of LNG facilities sanctioned since President Donald Trump returned to the White House in January could strain domestic supplies. A recent report from the International Gas Union added that natural gas demand increased globally 1.9% annually in 2024, and it is on pace to increase another 1.7% this year.

Much of that demand should be centered in the Asian markets. Supplies, meanwhile, expanded for the 11th consecutive year, with the U.S., Qatar and Australia establishing themselves as the premier producers.

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