October 29 – The U.S. strategy of significantly expanding LNG exports, while strengthening its dominance in the global energy market, has triggered a chain reaction of rapidly rising domestic natural gas prices, according to AUS GLOBAL. This contrasts with the government's earlier commitment to maintaining low energy costs.

**Record-High LNG Export Demand** Data shows that as more LNG export facilities come online or expand production, export demand is poised to surpass domestic residential gas consumption for the first time. AUS GLOBAL notes that while the power sector remains the largest consumer of natural gas in the U.S., overseas shipments have steadily increased since the country began LNG exports in 2016.

In the first half of the year, residential gas usage was relatively high due to colder temperatures and strong heating demand. However, in the second half, Europe and Asia accelerated stockpiling for winter, typically driving up LNG exports. This year, feedgas demand for LNG exports is expected to exceed residential consumption.

Meanwhile, higher export demand has intensified competition for domestic natural gas supply.

**Soaring Domestic Gas Prices Strain Household Budgets** Fierce competition for gas supply among LNG export terminals has driven up end-user prices, contributing to inflationary pressures. AUS GLOBAL highlights that pipeline gas prices surged 13.8% year-on-year in August 2025, ranking among the highest increases for consumer goods. The average residential gas price jumped from $12.34 per thousand cubic feet in January 2025 to $25.27 in July.

Although 47% of households still rely on natural gas as their primary heating source, down from 49% in 2010, the share of households using electric heating rose from 35% to 42% in 2024. The Energy Information Administration (EIA) attributes this shift to demographic changes, technological advancements, and policy factors, with electric heating becoming more prevalent in warmer regions.

Nevertheless, natural gas remains a key heating fuel, and its price surge has significantly increased household expenses. Henry Hub natural gas futures have averaged 37% higher in 2025 compared to 2024 levels, further underscoring rising cost pressures.

**LNG Expansion Wave: Boosting Global Supply Amid Domestic Strain** Backed by policy support, local LNG companies are aggressively investing in new projects. Woodside has finalized its investment decision for a Louisiana LNG project, expected to start operations in 2029. Venture Global secured approximately $15.1 billion in financing for its CP2 LNG project and associated pipelines, while Cheniere approved expansion plans for Corpus Christi. These projects will substantially increase global LNG supply and domestic feedgas demand in the coming years.

AUS GLOBAL states that the EIA forecasts the U.S. will add 5 billion cubic feet per day (Bcf/d) of export capacity between 2025 and 2026, raising total exports from 11.9 Bcf/d in 2024 to 16.3 Bcf/d by 2026. Currently the world’s largest LNG exporter, the U.S. has 15.4 Bcf/d of operational capacity and plans to add another 13.9 Bcf/d from 2025 to 2029.

While rapid LNG export growth aligns with U.S. energy market strategy, the resulting domestic price hikes and inflation risks present new challenges. AUS GLOBAL emphasizes that policymakers must carefully balance export revenues and domestic energy costs in the years ahead.