Henry Hub pricing and Brent slump create LNG buyer’s market
The new pricing system in global liquefied natural gas (LNG) markets was intended to offer a lower-cost alternative to oil-linked sales contracts. As oil prices have slumped and a global LNG supply glut persists, it has become a buyers’ market
When Cheniere Energy’s first shipment of LNG finally leaves its Sabine Pass gasification plant in Louisiana in late February or March, it will mark a new era of LNG exports from the US lower 48. The internationalisation of Henry Hub pricing is on its way – and it’s already influencing global prices. After the slump in Brent oil prices, though, it is no longer the only factor set to drive LNG prices lower. The Department of Energy’s approval of US LNG export projects – made viable by surging domestic gas production over the past decade - has been a lengthy process and was expected to provide a cheaper alternative to oil-linked sales contracts, especially for LNG-hungry Asia. The long-awaited
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
