Biden’s departure spurs LNG industry growth
The American liquefied natural gas industry is booming with eight multi-billion dollar export terminals operating along the Gulf Coast, five under construction and 18 that have been approved but are not yet being built.
Those under construction are the Plaquemines LNG in Louisiana, Corpus Christi Stage III, Golden Pass LNG at Sabine Pass, Port Arthur LNG and the NextDecade Co.’s $18.4-billion Rio Grande LNG Export Terminal at Brownsville.
The Permian Basin Petroleum, Texas Independent Producers & Royalty Owners and Texas Oil & Gas associations say the industry’s exuberance is well-justified.
With the price in Europe running about four times what natural gas is worth in the United States, PBPA President Ben Shepperd said the LNG market and industry are undergoing strategic transformations.
Permian Basin Petroleum Association President Ben Shepperd
“The rapid expansion of export infrastructure in the U.S., projects that likely had long been in planning stages, are now getting green-lit and funded,” Shepperd said. “This action appears to be a symptom of a pent-up readiness to expand waiting on the right market and policy signals.
“There is growing global recognition that LNG isn’t just a transitional fuel, it’s a cornerstone of energy security. Consumers in Asia and Europe have been diversifying away from pipeline dependency and betting on seaborne LNG.”
Shepperd said this is creating unprecedented demand for new liquefaction capacity, shipping and re-gasification terminals.
“While this was occurring under the previous administration in Washington, D.C., policy decisions at that time limited growth of the U.S. LNG industry,” he said. “By the time the Trump Administration took over, many LNG projects had already gone through permitting and planning but were waiting for market conditions and policy signals to align.
“The shift in administration brought more predictability to the permitting environment and international diplomacy, particularly around Europe and clean energy partnerships.”
Shepperd said it is also important to note that despite political shifts, global demand dynamics and the need to balance affordability, reliability and sustainability when it comes to energy are far more powerful drivers of investment.
“The post-COVID recovery and geopolitical instability in the world had already set the stage for massive LNG expansion before President Trump took office for a second time,” he said. “The European market is expected to remain robust for years to come.
“Even with aggressive renewable targets, Europe will need significant base load energy sources to balance intermittency. LNG fits perfectly into this need. It’s cleaner than coal, flexible and politically preferable compared to Russian pipeline gas.”
Beyond Europe, Shepperd said, Asia remains a critical growth engine.
“Countries like China, India, Vietnam and the Philippines are all increasing their LNG import capacities,” he said. “So it’s not just Europe driving optimism, it’s a global story with demand diversifying across continents.
“But other economic factors such as tariffs are likely to impact these markets as well. For instance, China has announced it will not be purchasing LNG from the U.S.
“While a theoretical re-entry of Russian gas into Europe could impact short-term pricing, there would likely need to be a massive political shift for even that short-term impact to occur. The scale of investment in LNG is absolutely justified.
“The long-term fundamentals are solid: global energy demand is rising, coal-to-gas switching is growing and new markets are opening up. On top of that, LNG provides geopolitical leverage and energy security for importing nations.”
Shepperd said the optimism isn’t just speculative.
“You can see in the market that it is based on signed off-take agreements, capacity bookings and multi-decade contracts,” he said. “Investors and operators are making decisions grounded in data, not hype.
“Plus, LNG is evolving. Innovations in carbon capture, methane reduction and renewable gas blending are making it more sustainable. That positions LNG not only as a reliable energy source today but as a future-proof part of a lower-carbon economy.”
TIPRO President Ed Longanecker said American LNG had long held great promise, but regulatory delays slowed its momentum.
Ed Longanecker
“The current administration’s clearer policy direction and emphasis on energy security have helped unlock the industry’s potential, propelling projects to move forward in their purpose to deliver critical resources,” Longanecker said. ”While Europe remains a strong market, especially given the drive to diversify away from single-source dependency, there’s growing demand from Asia and emerging markets as well.
“These regions are seeking reliable, lower-emissions energy options and U.S. LNG is well-positioned to meet that need. Furthermore, U.S. LNG has a proven track record as a reliable, geopolitically stable alternative.”
Longanecker said the optimism is justified by the sheer scale and diversity of global demand, ongoing infrastructure investments and the strategic role LNG plays in both economic development and decarbonization efforts.
“Add in the strength of U.S. supply, especially from Texas, and it’s clear why the industry is surging forward with confidence,” he said.
TXOGA Chief Economist Dean Foreman said the Trump administration’s resumption of federal LNG export approvals on Jan. 20 was welcomed by both global natural gas markets and the industry.
Dean Foreman
“Meanwhile, market demand fundamentals remain constructive despite broader economic uncertainties,” Foreman said “Natural gas has proved to be one of the more recession-resilient fuels with consumption holding relatively steady even during the 2020 pandemic.
“Today strong LNG export growth, particularly to Europe, combined with a return to more typical seasonal temperatures this winter, has lifted expectations for a tighter supply-demand balance through the remainder of 2025.”
He said lower oil prices have simultaneously curbed growth in associated gas production, increasing reliance on dedicated dry gas drilling to meet both domestic and export needs.
“This shift is helping sustain activity in key dry gas basins such as the Haynesville (in East Texas and Western Louisiana)” Foreman said. “That said, uncertainties remain.
“China is currently effectively halting imports of Texas LNG and February data show that more than 90% of Texas LNG exports were redirected to Europe. In addition, a potential resumption of Russian gas flows to Europe could reduce current export demand and weigh on prices.”
Nonetheless, Foreman said the industry’s optimism is grounded in long-term structural shifts: a growing global reliance on natural gas for energy security, the flexibility and reliability of U.S. LNG supply and the return of a clearer regulatory path.
“Taken together, these factors make a strong case for continued investment even in a volatile environment,” he said.
