North America's LNG Surge: What Energy Professionals Need to Know
by Bob Shively, Enerdynamics President and Lead Facilitator
If you work in the natural gas or electricity business, you may have noticed that LNG — liquefied natural gas — has moved from a niche topic to one of the most consequential forces reshaping North American energy markets. At this point, anyone involved in the natural gas industry needs to understand the basics about LNG. Here is a quick overview..jpg)
What is LNG and why does it matter?
LNG is natural gas that has been cooled to about -260°F, reducing its volume to roughly 1/600 of its original volume. That makes it possible to load it onto specialized tanker ships and transport it to markets around the world. Once it arrives at its destination, it is warmed back into gas and injected into local pipeline systems. The LNG export process — called liquefaction — requires export terminals, transport tankers, and regasification import terminals.
Current export levels: The U.S. leads the world
The United States has become the world's largest LNG exporter — a remarkable achievement for a country that was importing LNG just a decade ago. As of early 2026, the U.S. became the first country to export over 100 million metric tonnes of LNG in a single year in 2025. Europe has been the dominant destination, absorbing roughly two-thirds of North American LNG. Much of the remaining gas goes to Asian markets. LNG exports are now equivalent to about 16% of domestic U.S. consumption. LNG export volumes are greater than consumption by residential customers. And as you’ll see below, exports are expected to grow dramatically.
Existing infrastructure: The Gulf Coast hub
U.S. liquefaction capacity stands at approximately 15.4 billion cubic feet per day (Bcf/d). North America's LNG export infrastructure is heavily concentrated along the U.S. Gulf Coast due to the region's proximity to prolific shale gas production, deep-water port access, and an existing pipeline network. In 2025, Canada opened its first industrial-scale LNG terminal: LNG Canada, located in Kitimat, British Columbia. With two liquefaction trains capable of producing 1.84 Bcf/d combined, LNG Canada ships exclusively to Asian markets. Mexico has also entered the export market in a smaller way, with a floating LNG facility — Altamira LNG — shipping its first cargo in August 2024.
Source: U.S. Energy Information Administration
Planned expansion: More than doubling capacity by 2029
The buildout ahead is staggering. North American LNG export capacity will grow from 11.4 Bcf/d at the start of 2024 to approximately 28.7 Bcf/d by 2029 if projects under construction come online as planned. The U.S. alone expects to add an estimated 13.9 Bcf/d of new liquefaction capacity between 2025 and 2029, which would push total U.S. capacity past 22 Bcf/d. Five large U.S. projects have already reached Final Investment Decision (FID) and are actively under construction, Canada is adding two more facilities, and Mexico's Energía Costa Azul on the Pacific coast is expected to begin operations in early 2026. Taken together, North American additions are expected to represent more than 50% of global LNG capacity additions through 2029, according to the International Energy Agency.
Source: U.S. Energy Information Administration
Impact on North American gas consumers
The LNG export boom has real consequences for natural gas consumers. Exports have been the single largest source of U.S. gas demand growth since 2016, and the trend will intensify. What this means in practice: gas prices in North America are becoming increasingly tied to global market events. A cold snap in Asia or a supply disruption in Europe can now ripple into Henry Hub prices within days. For power generators, large industrial gas users, and residential and commercial customers, this translates into higher and more volatile energy costs. And it doesn’t only impact the cost of natural gas. In most regions of the U.S., the cost of gas drives the marginal cost of electricity, meaning that electricity consumers will also be impacted. The bottom line: the era of abundant, cheap, regionally isolated natural gas in North America is giving way to something more global, more dynamic, and more complex—and understanding LNG is becoming essential for anyone in the energy business.
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