Cheniere's Outlook on U.S. LNG's Next Wave of Demand, Supply & Risks

Core Insights - Cheniere Energy anticipates a significant increase in U.S. natural gas usage for LNG production, potentially consuming up to 40 billion cubic feet per day in the coming years, more than double the current record of 18 bcfd [1] - The company sees emerging Asian markets, particularly Bangladesh and Pakistan, as key absorbers of new LNG supply, driven by affordability [2] - Rising construction costs are influencing investment decisions, with over two-thirds of this year's Final Investment Decisions being expedited to secure fixed-price contracts [3] - Cheniere maintains a strong competitive position due to its early-mover advantage, reliable operations, and cost-efficient logistics, with over 90% of 2026 volumes secured under long-term contracts [4] - The company warns that only 17% of this year's new LNG capacity has long-term contract coverage, highlighting the importance of disciplined contracting for long-term resilience [5] Industry Trends - Global LNG demand is projected to require an additional 30 million metric tons of supply annually, with the U.S. expected to contribute significantly to this growth [2] - The LNG sector in the U.S. could scale to 300 million tons per annum, but not all producers are prepared for this expansion [5] - Construction inflation is reshaping the timeline for LNG projects, pushing developers to act quickly to avoid rising costs [3]