US LNG Exports Poised to Become Second Largest Net Export Industry
US liquefied natural gas (LNG) exports are on track to nearly double within five years, becoming the nation's second-largest net export industry. A new study by S&P Global Energy projects significant job growth and GDP contribution.
The United States is set to solidify its position as a global energy leader, with liquefied natural gas (LNG) exports projected to become the nation's second-largest net export industry within five years, surpassed only by civilian aircraft and parts. A comprehensive study by S&P Global Energy indicates that this burgeoning export sector will support an estimated 550,000 jobs annually and contribute $1.4 trillion to the U.S. gross domestic product (GDP) through 2040.
The study forecasts that the demand for U.S. natural gas, known as feedgas, for LNG exports will double to 36 billion cubic feet per day (bcf/d) within the next five years. This projection represents a 25% increase compared to previous base case estimates. Consequently, the U.S., already the world's foremost LNG supplier, is expected to capture over one-third of the global market share during this period.
This updated analysis supersedes a December 2024 study, incorporating a surge in LNG investment following the lifting of the U.S. LNG 'pause' in January 2025. Seven new projects have reached final investment decisions, with several more anticipated in the coming months. Total investments in the LNG supply chain are now estimated to exceed $1 trillion by 2040. The projected economic benefits include over $2.9 trillion in total revenue for U.S. businesses, $206 billion in federal and state tax revenues, and nearly $630 billion in labor income.
Notably, the economic advantages are expected to be broadly distributed across the nation. The study finds that 42% of the job creation and 33% of the GDP contribution will occur in non-gas-producing regions. Furthermore, the study highlights that these economic gains are anticipated with a negligible impact on U.S. domestic natural gas prices. End-user gas costs for households are projected to increase by an average of only 1.6% between 2026 and 2031, ensuring that U.S. natural gas prices remain among the lowest globally for both residential and industrial consumers.