Energy Majors Double Down on U.S. LNG Despite Gas Peak

U.S. energy giants ramp up LNG projects, betting on long-term demand growth at home and abroad, even as forecasts warn of peak gas consumption.

Big energy companies are pouring more money on liquefied natural gas exports, even as analysts keep warning that the world may soon hit peak gas demand. In the U.S., the push is especially noticeable. Population growth in the South, along with high energy-consuming industries in Texas and Louisiana, is driving up local consumption. At the same time, global demand keeps pulling U.S. shipments overseas, cementing America’s position as the world’s largest LNG exporter. That mix of strong domestic growth and steady international appetite explains why LNG remains at the heart of today’s energy investment strategies.

ExxonMobil, Chevron, and ConocoPhillips are building out more than just export terminals. They’re laying down pipelines to move gas from the Permian straight to the Gulf Coast, making sure supply can actually reach the ships. That’s important, because the U.S. isn’t only chasing export sales. It’s also matching what’s produced with where the gas is actually being used at home. Fast-growing states across the South and Southeast are pulling in more gas for heating and electricity. At the same time, big petrochemical and manufacturing plants are signing long-term deals to keep their fuel locked in. So LNG isn’t just about selling fuel overseas. It’s also turning into a growth driver here at home, powered by population shifts and new energy infrastructure.

Still, it’s a gamble with plenty of risk attached. The International Energy Agency and climate groups still project that gas demand will level off by the mid-2030s, as wind, solar, and electrification keep expanding. For America’s biggest oil and gas companies, though, the math looks different: Asia and Europe keep buying more LNG, and U.S. population growth is pushing up everyday gas use at home. Put together, the overseas demand and steady U.S. growth help explain why companies aren’t too worried about talk of “peak gas” and are pouring even more money into LNG. For households and regulators alike, the bottom line is that LNG will stay a core part of America’s energy mix for years to come even as renewables keep gaining ground.