LNG Set to Become No. 2 U.S. Export Industry by 2031, S&P Global Says
U.S. LNG exports are on pace to become the country’s second-largest net export industry by 2031, World Oil reports, citing a new S&P Global Energy study that credits accelerating investment and expanding export capacity for the growth. The study projects U.S. LNG feedgas demand will double to 36 Bcfd over the next five years, 25% above prior forecasts, pushing the U.S. share of the global LNG market past one-third. S&P Global estimates more than $1 trillion will flow into the U.S. LNG supply chain through 2040, supporting roughly 555,000 jobs annually and $1.4 trillion in GDP. The forecast follows the lifting of the U.S. LNG permitting pause in early 2025, after which seven final investment decisions on new projects have been reached, with more expected within the year. S&P Global also flagged pipeline infrastructure, particularly in the Northeast, as the primary constraint on continued market growth.
What It Means for Subcontractors
- Gulf Coast civil, mechanical, E&I, and pipefitting contractors should expect sustained bid flow as the seven newly sanctioned LNG projects move from FEED into construction over the next year.
- Pipeline and midstream contractors in the Northeast have an opening: S&P Global names takeaway capacity constraints there as the key bottleneck, meaning compression, gathering, and interstate pipeline packages are likely near-term priorities for operators seeking to relieve seasonal price volatility.
- With $1 trillion in supply chain investment projected through 2040, subcontractors should track FID announcements tied to specific terminals over the next 12 months to identify where EPC packages and craft labor demand will concentrate first.
