Liquefaction 2.0

Natural gas is the largest source of energy for US electricity generation, and its share is growing. At the same time, an increasing volume of US natural gas is being liquefied (LNG) and exported, primarily to Asia and Europe. In an earlier Daily Sketch, we highlighted the significant wave of LNG export capacity expected to come online in the US through 2030. To feed these new LNG terminals, substantial investment in pipeline infrastructure is underway. Between 2026 and 2031, 94 billion cubic feet per day of additional pipeline capacity is scheduled to enter service for a total cost of USD 43 billion. Half of that capacity is directly supporting LNG facilities. This underscores how closely US domestic gas markets are becoming linked to global energy demand, which is expected to rise substantially.

Source: US Energy Information Administration, October 2025.