The Growing Role of LNG in American Energy Policy

The U.S. energy landscape is shifting, and liquefied natural gas (LNG) is at the center of the conversation. With the release of the New Energy Policy 2025, LNG has been formally recognized as a major growth driver, both for the domestic economy and the country’s standing as a global energy powerhouse.

But while LNG exports may strengthen America’s role on the world stage, the implications at home are complex. Rising prices, infrastructure expansion, regulatory pressures, and changes in renewable energy dynamics are all part of the unfolding picture. What does this mean for the energy industry and beyond?

LNG as a Strategic Economic Lever

The New Energy Policy 2025 emphasizes LNG’s potential to boost the U.S. economy and solidify its position as the world’s top LNG exporter. With demand for flexible, lower-carbon energy sources rising worldwide, U.S. LNG is well-positioned to fill the gap, especially in countries seeking alternatives to coal or oil.

A surge in LNG exports could create jobs, stimulate investment, and generate billions in revenue. But there's a tradeoff: increased demand for U.S. gas abroad has ripple effects on pricing and availability at home.

Rising Domestic Prices are a Hidden Cost

The Department of Energy projects that significantly increasing LNG exports could raise wholesale gas prices by as much as 31% (based on Henry Hub prices). Why? As more U.S. natural gas is shipped overseas, the domestic supply tightens, and prices rise.

This impacts more than just household heating bills. Higher gas prices ripple through the entire economy, particularly in industries that rely heavily on natural gas, like manufacturing and electricity generation. That cost pressure could even slow economic growth in gas-intensive sectors.

Infrastructure Investment Accelerates

To support this export boom, major LNG infrastructure projects are underway, especially in Texas and Louisiana. These projects are not only expanding capacity, but they’re also reshaping the physical and economic landscape of entire regions.

Key U.S. LNG Projects to Watch

Texas

• Golden Pass LNG (Sabine Pass): Expected to reach full 18 million tons/year capacity by late 2024.
  
  
• Port Arthur LNG: Still in planning stages, but set to add another 13 mtpa, further solidifying Texas’ leadership in LNG.
  
  

Louisiana

• Cove Point LNG: Currently undergoing output-boosting upgrades.
  
  
• Calcasieu Pass (Venture Global LNG): Already operational with expansion plans underway.

Engineering firms like Bechtel, Chiyoda Corporation, and McDermott are leading the charge in designing and building this next wave of LNG terminals.

Regulatory Tensions Around Emissions

Despite LNG’s reputation as a cleaner-burning fossil fuel, the industry faces scrutiny over lifecycle emissions, especially methane. While CO₂ emissions in the LNG value chain are relatively low, methane leaks, flaring, and venting continue to be major concerns.

One of the policy’s more controversial points is its handling of inconsistent methane regulations across states and jurisdictions. Some natural gas hubs still lack basic limits on flaring, creating uneven regulatory burdens and uncertainty for producers.

Expect methane tracking and emissions accountability to remain flashpoints in the coming years.

What This Means for Renewable Energy and REC Prices

LNG doesn’t generate Renewable Energy Certificates (RECs), but it does play a supporting role in grid stability. Its reliability helps offset the intermittent nature of solar and wind power.

That said, the new policy’s LNG-first approach may stall new wind and solar development in the short term. With fewer renewable projects coming online and rising demand for RECs (driven by RPS and ESG goals), the supply-demand imbalance is expected to push REC prices higher.

Businesses depending on RECs to meet sustainability targets may face increased costs or limited availability.

The Path Forward Must Include Balance and Diversification

To prevent the domestic market from feeling the full weight of LNG expansion, the energy mix must evolve strategically. Here are a few considerations:

• Unlock new gas fields to ease domestic supply constraints.
  
  
• Revive nuclear power as a stable, carbon-free generation source.
  
  
• Invest in renewables where economically viable to maintain supply diversity and affordability.

Each of these levers will be essential in ensuring that LNG growth doesn’t come at the expense of price stability or long-term sustainability.

Preparing for America’s Energy Future

LNG is clearly a centerpiece of the New Energy Policy 2025, and the U.S. is doubling down on its leadership in this space. But growth comes with growing pains. Price impacts, regulatory tensions, and changes in renewable energy economics all require careful consideration.

For energy suppliers, brokers, and industry stakeholders, staying ahead means understanding not just where the market is going but how it’s evolving beneath the surface. The LNG boom is here. How we manage its effects will determine how well we navigate the next phase of America’s energy future.

For more ways to prepare your energy supply business for the future and manage risk, explore our solution Risk360 today.