Do not fear runaway Henry Hub prices

Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG

The rapid growth in US LNG exports, coupled with rising domestic gas demand driven partly by AI development, has fuelled concern that Henry Hub prices could climb sharply in years to come and gradually erode the long-term competitiveness of US LNG on the global market. Those fears are understandable, but they are for now overstated. In the short term, the crisis around the Strait of Hormuz has made concerns over the competitiveness of US LNG somewhat beside the point. With buyers scrambling to secure supply amid disruptions to Middle Eastern exports, the key issue has been availability rather than marginal differences in cost. Over the longer term, however, analysts do not expect Henry Hub t