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Markets & Forecasts

Price disparity a concern for US LNG

US LNG could become more expensive as upstream gas producers seek to boost their profit margins US LNG could become more expensive as upstream gas producers seek to boost their profit margins.
By Abhishek Kumar 24 September 2019 Americas / LNG 0 34617
The Meridian Spirit loading a cargo at Sabine Pass LNG. (Cheniere)

Directional impact on forecast:
Bullish for US LNG prices

Henry Hub linkage in LNG and gas contracts is losing its appeal for gas producers in the United States. Gas feedstock for making LNG in the US is set to become more expensive as the country’s upstream producers want to boost their profit margins. This has the potential to raise the cost of US LNG for consumers worldwide.

The way gas feedstock is priced is becoming a source of discontent among producers as the US...