The Shape of Things to Come

Nothing goes more hand in glove this time of year like cold temps and natural gas. And when you happen to be the world’s largest gas producer finally seeing prices rise like a ghost from the boneyard, well, that might be a tickle on the belly but hardly the turnaround we need. Some good news lies ahead if you follow prognosticators and their 2025 outlooks, which claim the stars seem to be aligning for U.S. natural gas in the years ahead. We are the world’s largest exporter of LNG, and the shape of things to come, they suggest, could well create a golden constellation for gas producers who’ve been waiting for the moment when everything changes.

Reese Energy Consulting starts today with news from Reuters and the surge of U.S. LNG exports in November, where nearly seven out of 10 cargos made delivery to Europe at prices averaging $12.90 per MMBTU—the highest level in two years as the continent struggles to wean itself off Russia imports.  

The U.S. is back to pushing record highs on LNG exports as seen in November with terminals at near capacity. We’re expected to easily crush those highs like a fist-full of saltines in December with the startup of Venture Global’s 20 MTPA Plaquemines plant and Cheniere’s 10 MTPA expansion project. Toss in a new, friendlier administration ahead, an expected reversal of the LNG export permit pause, and the now incredible demand for electrical power fueled by natural gas, and that’s the celestial body we’ve been longing to telescope. There’s more to share here.