The U.S. built the export infrastructure and the world showed up to buy. June feedgas flows are up from May and the facilities are not seasonal. They run on long-term contracts that require near-capacity operations year-round. That baseline demand did not exist five years ago and it is still growing.

The Export Terminals Are Running Hard

Golden Pass LNG in Texas has been setting new records for feedgas intake as the facility ramps toward full operation. Production has held relatively steady around 109.7 Bcf per day in June. Total demand including exports is projected by LSEG to climb from 102.9 Bcf per day this week to 105.3 Bcf per day next week. When consumption is approaching production levels, the gap between what comes out of the ground and what gets used narrows fast. That is the setup right now.

China Is Back in the Market for U.S. Cargoes

Two LNG tankers are sailing directly from the United States to China right now. One loaded at a facility in Maryland in mid-May and is expected to arrive around June 26. Another is on track for mid-July delivery. These are the first direct U.S.-to-China LNG shipments during the current presidential term and they are significant.

China is the world’s largest importer of natural gas. During periods of trade tension, Chinese buyers had been routing U.S. cargoes through intermediary countries rather than purchasing directly. Direct shipments signal a thaw in that trade and every tanker that loads at a U.S. facility and sails for China removes gas from the domestic supply pool.

If direct U.S.-China flows pick back up at scale, the second half of 2026 looks different than what the market has been pricing. China’s buying power on top of European competition for the same cargoes is the kind of demand squeeze that tightens the global LNG market fast. U.S. exporters are sitting in the middle of it.

Europe Needs the Gas More Than Usual

European storage entered the second half of the year at roughly 47% full against a five-year average of 62%. That 15-point gap has to close before the heating season arrives and the traditional sources are not available. Qatar’s Ras Laffan complex, the world’s largest facility of its kind, has suffered damage that officials estimate will take years to repair. Strait of Hormuz disruptions continue to create uncertainty for deliveries from the broader Middle East region. U.S. facilities are the most reliable alternative available right now and the competition for those cargoes between European and Asian buyers is intensifying.

Storage Looks Comfortable but the Trend Is What Matters

The EIA reported a 76 Bcf injection for the week ending June 19, roughly in line with the five-year average of 75 Bcf. Total storage sits about 5.7% above the five-year seasonal average. On paper that is a comfortable cushion.

I think the trend matters more than the current level. Storage is 2.2% below where it was at this time last year. The year-over-year surplus that defined the bear case in the first quarter has flipped to a deficit. If LNG exports hold near 17 Bcf per day or higher and summer heat drives power burn above normal for consecutive weeks, the 5.7% cushion above the five-year average could narrow significantly before September.

A storage surplus that is shrinking week by week with export demand climbing and summer heat building is not the same market that was sitting with excess supply in March. The numbers still say comfortable. The direction says tightening.

Four Companies Positioned for the LNG Growth Story
Cheniere Energy: Pure-Play U.S. LNG Export Exposure

Cheniere Energy (LNG) is the largest pure U.S. LNG exporter, operating two major liquefaction facilities in Texas and Louisiana with most production sold under long-term contracts that provide steady revenue.