U.S. LNG exporters have shipped record volumes so far in 2026, but rising natural gas prices in Europe and Asia may soon curb demand from price-sensitive buyers, according to Reuters columnist Gavin Maguire. 

Forward prices for LNG deliveries to Asia are expected to exceed $22 per million British thermal units (MMBtu) for October-December, the highest since early 2023, based on LSEG data cited by Maguire.

European benchmark prices at the Netherlands gas hub are seen at $21.50-$22.50 per MMBtu over the same period, also the steepest since late 2022. 

The price rally follows a sharp drop in Qatari LNG exports – down over 60% year-on-year – due to disrupted Gulf freight traffic amid the ongoing U.S.-Israeli conflict with Iran, tightening global supply. 

However, high cargo costs and a seasonal dip in gas consumption after summer may prompt buyers in Japan, China, and South Korea to delay purchases.

Due to expanding renewables and electrification, softening gas demand has already slowed imports in Europe, with July LNG arrivals at just 6.2 million tonnes, the lowest for that month since 2021. That suggests buyer caution over fuel costs now outweighs supply-security worries. 

For U.S. sellers, the near-term demand lull is not yet a major concern, as exports from January to July topped 73 million tonnes, up 23% from the same period in 2025. 

But prolonged high prices could accelerate electrification and shifts to alternative power, especially in cost-conscious Asian markets with fast-growing renewables and battery storage.

Storage operators may also hesitate to refill tanks at high prices, fearing weak winter demand and limited resale opportunities. 

Exporters are also aware of planned capacity expansions in the U.S. and Canada before the decade ends. Most of these projects were approved based on expectations of continued global demand growth.

Yet if high prices persist and curb consumption while speeding up energy transitions, U.S. LNG firms may soon face stiff competition for buyers, no matter how much supply they bring to market.