US LNG Exporters Race Against Time as Global Surplus Looms

US LNG exporters face a tight deadline as global supply exceeds demand by 2027. Four projects with 63 million tons of capacity are awaiting final investment decisions, while existing plants under construction face headwinds due to a labor shortage. The massive pipeline expansion by Gazprom could displace 40 million metric tons of LNG demand per year by 2031.

US developers are racing to cash in on the nation's natural-gas export boom while they still can. The massive US buildout of terminals that process and ship liquefied natural gas (LNG) has transformed the nation into the world’s top exporter of the fuel. However, plants still in development are facing a tight deadline: By 2027, global LNG supply will exceed demand, according to BloombergNEF US LNG Exporters Race to Tie Up Financing as Surplus Looms^[1].

Four US projects with the capacity to export 63 million tons of LNG a year are still awaiting final investment decisions. Even the $35 billion in US plants already under construction face headwinds amid a tight labor market that’s threatening to push back timelines. Golden Pass LNG, being jointly developed in Texas by Exxon Mobil Corp. and QatarEnergy LNG, is coming online in 2025, one year later than scheduled following a worker shortage and the bankruptcy of one of its contractors US LNG Exporters Race to Tie Up Financing as Surplus Looms^[1].

The Louisiana LNG project, developed by Woodside Energy, is under construction in Calcasieu Pass, Louisiana, and targeted to come online by 2029. Cheniere Energy Inc., the largest American exporter, has announced a $2.9 billion expansion of its Corpus Christi plant in south Texas, which would boost total Corpus Christi capacity to 30 million tons a year by the end of the decade US LNG Exporters Race to Tie Up Financing as Surplus Looms^[1].

Venture Global’s $15.1 billion CP2 project in Louisiana is its third export facility, due to start in 2027. NextDecade Corp., currently constructing the first 18 million-ton-a-year phase of Rio Grande LNG in south Texas, is looking to secure funding for its two next trains, which would together add 12 million tons of capacity per year US LNG Exporters Race to Tie Up Financing as Surplus Looms^[1].

Meanwhile, the Alaska LNG project, a joint venture between Glenfarne Alaska LNG and JERA Co., Inc., signed a Letter of Intent with JERA for the sale of one million tonnes per annum (MTPA) of LNG over a 20-year term Alaska LNG and JERA Sign Letter of Intent for LNG Offtake^[2]. This agreement follows months of committed discussions and highlights the increasing demand for LNG in the Asia-Pacific region.

The global LNG market is poised for significant changes. By 2030, US rival Qatar will have finished its own years-long LNG buildout, further damping appetite for new terminals. Additionally, a massive pipeline expansion by Gazprom PJSC could begin funneling more of Russia’s natural gas to China by 2031, possibly displacing as much as 40 million metric tons of LNG demand per year US LNG Exporters Race to Tie Up Financing as Surplus Looms^[1].

As the deadline looms, US LNG exporters are navigating a complex landscape of supply and demand dynamics. The race to secure deals and final investment decisions before the global LNG glut hits is critical for the future of the industry. Investors and financial professionals should closely monitor these developments as they could significantly impact the LNG market and the companies involved.