US LNG may lose competitive edge as gas prices climb, Fulcrum CEO says

US liquefied natural gas (LNG) projects may face a loss of competitive edge due to the rising domestic natural gas prices, according to Fulcrum LNG CEO Jesus Bronchalo. Speaking at a panel discussion at Rice University’s Baker Institute, Bronchalo stated that the Henry Hub gas price is expected to rise further in the US, which is already one of the most expensive locations globally for LNG production.

This could make US LNG producers less competitive compared to other regions. However, Joshua Lubarsky, president of maritime firm Seapath Group, noted that while the US currently ranks among the world’s highest-cost LNG producers, its gas price dynamics offer a degree of stability that appeals to buyers. The financing structure for US LNG projects is also shifting, with a growing reliance on private equity supported by government-backed sovereign wealth funds, according to Julie Mayo, general counsel at Sempra Infrastructure.

Mayo highlighted Sempra’s use of private equity funds for expansion as an example of the new financing approach for US LNG projects, moving away from traditional external loans. Sempra operates as one of the largest US LNG exporters through its Cameron LNG facility and Port Arthur development.

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