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U.S. Aims to Triple LNG Export Capacity by 2030
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Steel and Aluminum Tariffs Increase Construction Costs Across Projects
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Cheniere and Venture Global Lead Wave of New LNG Facility Approvals
U.S. liquefied natural gas (LNG) exporters are pressing ahead with over 90 million tonnes per annum (MTPA) of new export capacity this year, reaffirming the country's leadership in global LNG despite trade uncertainties and rising construction costs.
The momentum follows Woodside Energy’s recent final investment decision (FID) on its Louisiana LNG facility—the first such move in two years. This project marks a new wave of capacity expansion, as developers aim to triple U.S. LNG export capability by 2030.
The U.S. currently boasts 91.3 MTPA of operational LNG export capacity, with another 95.7 MTPA already under construction.
Despite headwinds, including steel and aluminum tariffs that have added to construction costs, industry leaders such as Cheniere Energy, Venture Global, Sempra, and Commonwealth LNG are signaling confidence with multiple projects approaching FID milestones in 2025
Key U.S. Projects Awaiting FIDs
Project |
Capacity |
Venture Global LNG CP2 |
28 MTPA |
Cheniere Midscale |
5 MTPA |
Port Arthur Phase 2 |
13 MTPA |
Commonwealth LNG |
9.5 MTPA |
Louisiana LNG Phase 1 |
16.5 MTPA |
Lake Charles |
16.5 MTPA |
Next Decade Train 4 |
5.4 MTPA |
Cheniere Energy and Venture Global: Expanding Core Capacity
Cheniere Energy is on track to approve a 5 MTPA expansion—Midscale Trains 8 and 9—at its Corpus Christi facility this year. CEO Jack Fusco confirmed the Federal Energy Regulatory Commission has granted a key permit, clearing the path for FID.
Meanwhile, Venture Global is getting ready to move forward with CP2 LNG, a large-scale 28 MTPA facility in Louisiana. CEO Mike Sabel stated that the company has received its final supplemental environmental review and possesses a non-FTA export license, enabling it to supply markets without a U.S. Free Trade Agreement. “This is an essential permit ahead of our FID for phase one of the project,” he added.
Commercial Momentum Builds Across the Sector
Companies such as Commonwealth LNG, Port Arthur LNG, and NextDecade have signed long-term supply deals in early 2025, accelerating momentum toward final investment decisions.
Sempra has reiterated its intention to approve Port Arthur Phase 2 this year, although CEO Jeffrey Martin emphasized a cautious approach to “lock in favorable long-term economics” amid macroeconomic uncertainty.
Navigating Tariffs and Cost Inflation
The LNG sector continues to grapple with inflationary pressures. Since 2021, nearly all U.S. LNG projects have encountered price escalations and cost overruns, driven by supply chain disruptions, labor shortages, and higher borrowing costs.
According to Rapidan Energy Group, project costs surged significantly pre-FID:
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Woodside’s Louisiana LNG: +31%
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NextDecade’s Rio Grande: +29%
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Port Arthur Phase 1: +18%
Though many cost hikes occurred prior to the current tariff environment, 25% tariffs on steel and aluminum remain in place, creating structural cost pressure for future developments.
Venture Global estimates tariffs could increase CP2 project costs by roughly 1%.
Discipline Versus Risk-Taking
Despite rising costs, approaches vary. According to Chief Commercial Officer Anatol Feygin, Cheniere maintains its long-standing commercial discipline, requiring 90% of offtake capacity to be contracted pre-FID.
By contrast, Woodside Energy approved its Louisiana terminal with contracts for just 1 MTPA, signaling greater risk tolerance. The company has also entered into a non-binding agreement with Saudi Aramco, which could lead to Aramco acquiring a stake in the project.
A New Era of LNG Growth
Industry experts agree U.S. LNG remains an attractive investment despite volatility.
"Clearly, not having customers is not impeding potential financing for these projects in a way it used to," said Ira Joseph, Senior Researcher at Columbia University’s Center on Global Energy Policy.
As final investment decisions loom, the U.S. LNG sector is gearing up for an unprecedented phase of growth—poised to reshape global gas markets through 2030 and beyond.
