The Energy Information Administration reported that U.S. liquefied natural gas developers signed sale and purchase agreements for 40 million tons per annum of LNG from planned export facilities in 2025. This volume, equivalent to 5.2 billion cubic feet per day, represents the highest level of contract signings since 7.0 Bcf/d was recorded in 2022.
What it means
Sale and purchase agreements specify terms including volumes, contract length, pricing, and liquefaction fees, serving as essential prerequisites for securing final investment decisions for LNG terminal construction. Financial institutions typically require complete approvals from the Department of Energy and the Federal Energy Regulatory Commission before developers can reach these decisions. The EIA noted that favorable contract terms and increased demand in Europe and Asia contributed to the rise in signings during 2025, following a pause in DOE permit reviews initiated in 2024.
Developers of Port Arthur Phase 2 contracted the most capacity nationwide at 1.4 Bcf/d, followed by Rio Grande Phase 2 at 1.2 Bcf/d and CP2 at 1.1 Bcf/d. Commonwealth LNG developers contracted 0.7 Bcf/d, while developers of four other terminals signed the remaining 0.9 Bcf/d. Over 90% of volumes sold in 2025 were under free-on-board agreements, where international buyers take ownership and pay for exports at the loading terminal, compared with 100% in 2024. Approximately 95% of sold volumes were under 20-year contracts effective upon commissioning.
Pricing structures shifted slightly, with 56% of sold volumes indexed to the Henry Hub natural gas price benchmark, down from 67% in 2024; LNG contracts are typically linked to Henry Hub or Brent crude oil futures. Most contracted volumes were split between off-take companies based in Europe and Asia, with Middle Eastern buyers contracting a smaller share. Developers reached final investment decisions on four projects in 2025, bringing 7.2 Bcf/d of nominal export capacity under construction with planned in-service dates ranging from 2029 to 2031. Woodside Louisiana LNG Phase 1 and CP2 Phase 1 are targeted for 2029, Rio Grande Phase 2 for 2030–31, and Port Arthur Phase 2 for 2031. Energy Transfer announced in December 2025 that it would suspend development of Lake Charles LNG but is exploring a sale to a third-party developer.
Key facts
- 40 million tons per annum (5.2 Bcf/d) of LNG SPAs signed in 2025, the highest volume since 7.0 Bcf/d in 2022
- Port Arthur Phase 2 developers contracted 1.4 Bcf/d, the most nationwide
- Rio Grande Phase 2 developers contracted 1.2 Bcf/d
- CP2 developers contracted 1.1 Bcf/d
- Commonwealth LNG developers contracted 0.7 Bcf/d
- Over 90% of 2025 volumes sold under free-on-board SPAs, down from 100% in 2024
- Approximately 95% of volumes sold under 20-year SPAs
- 56% of sold volumes indexed to Henry Hub price, compared with 67% in 2024
- Four projects reached final investment decision, adding 7.2 Bcf/d capacity under construction
- Lake Charles LNG development suspended by Energy Transfer in December 2025
Source: U.S. Energy Information Administration data analysis