The USERDGAS requirement should remain at Record High in 2025 and 2026

Data centers and liquefied natural gas exports should keep natural gas requirements in the United States in a record high this and next year, according to the executives of Energy, in Ceraweek. However, infrastructure shortages could make growth problematic.

“We have the gas, we just don't have the pipelines to bring it to places. Now they see a situation in which it doesn't matter how much we produce,” Toby Rice from EQT told Reuters on the sidelines of the event in Houston.

According to Rice, the project cancellations and obstacles to new natural gas pipelines have led to higher electricity invoices for Americans at 35% in the past eight years.

The two most important driving forces of greater natural gas demand this and next year would be artificial intelligence that requires a lot of electricity, and LNG exports, since the USA is the top player in this area, whereby the production capacity will be put into operation in the next few years.

According to the Federal Government, LNG production this year could an average of 105.2 billion CU -FT -a day -if the pipelines are there to carry the gas from the field into the liquefaction trains.

But LNG producers don't have everything easy. At the beginning of this week, Reuters reported that some US LNG exporters wanted to increase their delivery prices for new negotiations of contracts with buyers, since the increasing costs have reduced the profitability of LNG projects in recent years.

One of them is the energy transmission, which is already discussions with buyers. “We don't like these prices. So, yes, we are negotiating them, ”said the company's co-CEO marshal, McCrea, the analysts during the recent income of Energy Transfer.

Other LNG developers and exporters have also tried to negotiate the contract prices with buyers in recent years, which has increased to an increase in construction, liquid and labor costs. The new projects have made these costs more expensive than the first plans.

By Charles Kennedy for Oilprice.com

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