U.S. natural-gas sector deals will surge in 2025 due to AI and LNG demand from Asia
Analysts say that U.S. Natural Gas dealmaking is expected to increase in 2025, due to the record demand for power from AI data centres, increased LNG exports, and renewed Asian investments.
According to the U.S. Energy Information Administration, data centers will be responsible for a surge in electricity demand that is unprecedented this year.
The price of benchmark gas dropped sharply last year, from the multi-decade highs set in 2022, after sanctions against Russia slowed negotiations. However, a rebound followed, as well as long-term LNG demand and domestic sales, have kept global buyers interested.
EIA data shows that the United States, already the top LNG exporter in the world, is on track to increase nameplate capacity this year to 115 millions tonnes per annum.
Rystad Energy reports that the ramp-up in shale gas production has rekindled mergers and acquisitions along the LNG value chain and across the key basins. Deal values have risen to $30 billion from $22.5 billion just a year ago.
Palash Ravi, Rystad’s Palash Ravi, said that more than $28 billion worth of gas and LNG assets were currently for sale. He cited potential deals involving Ascent Resource, BP GeoSouthern Williams, NextDecade’s Rio Grande Project, and GeoSouthern.
Enverus analyst Andrew Dittmar said that Asian firms would outbid U.S. producers in the Haynesville Basin to secure feedstocks for LNG imports.
U.S. gas shipments to Asia will reach 3.61 million tonnes in October, which is the second highest on record. This growth will be driven by cleaner energy goals and Taiwan's closure of its final nuclear reactor.
Ezra Yacob, CEO of EOG Resources, said that 2025 will be a year of change. We expect U.S. Gas demand to increase 4%-6% per year through 2030. This growth will be driven by LNG and Power.
(source: Reuters)
