A surge in global LNG demand and record U.S. power consumption is fueling a $50B investment wave in gas infrastructure. As pipeline and terminal projects accelerate, investors are eyeing long-term returns—but rising costs, regulatory hurdles, and shifting energy policies present real risks. The energy transition is entering a high-stakes phase.
US natural gas futures surged to an 11-week high at $3.54/MMBtu, fueled by a bullish EIA storage report showing a smaller-than-expected inventory build. With output easing slightly and LNG exports hitting record highs in September, tightening supply conditions are driving market momentum ahead of winter.
Natural gas prices surged to $3.47 per MMBtu at the start of October, marking strong monthly and yearly gains driven by a technical breakout, early-season cold forecasts, and tightening supply dynamics. With winter demand approaching, the rally may have more room to run.
TotalEnergies is expanding its presence in U.S. LNG, but CEO Patrick Pouyanné has warned that the current wave of Gulf Coast export projects could create a global oversupply. While the company continues to invest in select developments like the Rio Grande LNG facility, it is steering clear of others it views as commercially risky. Pouyanné emphasized that not all proposed projects will secure financing or long-term buyers, and overbuilding could drive down prices and strain margins across the industry. His comments underscore a strategic shift toward disciplined, value-driven growth amid a rapidly evolving global LNG landscape.
Sempra has made a final investment decision (FID) on the $12 billion Phase 2 expansion of its Port Arthur LNG terminal in Texas, doubling its export capacity and reinforcing the U.S. Gulf Coast’s role in global LNG markets. The project is set to begin construction in early 2026 and reflects growing international demand for American LNG.
