Global gas oversupply unlikely to shut in US LNG — but Henry Hub prices might

Price-sensitive demand is likely to absorb medium-term oversupply. The bigger threat to US LNG utilization is a cold winter and $5+ Henry Hub.

Despite a surge in US LNG FIDs this year, companies struck markedly different tones during their recent earnings calls. With new projects stacking up, investors are asking whether US LNG economics can hold as global prices fall. Analysts broadly expect medium-term oversupply, as Cheniere explicitly highlighted in its 3Q earnings presentation. But the qu…