LNG chain: Unit economics
Front-loaded costs: why the plant dominates a cargo's price
Front-loaded costs: why the plant dominates a cargo's price What this tab covers What it costs to move a unit of energy this way: capital and operating costs, tariffs, utilisation and how it compares with the alternatives.LNG costs are front-loaded in the liquefaction plant; shipping and regasification add smaller amounts. On 2026 US contract terms, LNG costs about 6.5 to 7.5 USD per MMBtu at the export plant before shipping (calculated).
Key costs
| Measure | Value | Note |
|---|---|---|
| US contract formula | 115% of Henry Hub plus 2 to 3 USD per MMBtu9 | With the 2027 Henry Hub strip at 3.92 (20 March 2026), about 6.5 to 7.5 USD per MMBtu, or 22 to 26 USD per MWh, at the plant (calculated) |
| European gas forward for 2027 (TTF) | up to 15.61 USD per MMBtu9 | 20 March 2026, against 8.60 to 9.97 in the winter before the war |
| Liquefaction capital cost, US Gulf Coast | about 0.76 to 1.05 billion USD per Mtpa10 | Corpus Christi Stage 3 and Plaquemines; Alaska LNG about 2.2 to 2.7 including a long pipeline |
| CP2 project cost | 32.5 to 33.5 billion for 35 Mtpa USD11 | about 0.93 to 0.96 billion USD per Mtpa (calculated) |
| Spot charter, modern two-stroke carrier | about 20,000 to 94,000 USD per day2 | 2024 range; steam turbine ships 6,000 to 7,000 |
Where the money goes
| Item | Share or amount |
|---|---|
| Gas purchase | About 4.5 USD per MMBtu at 115% of a 3.92 Henry Hub (calculated)9 |
| Liquefaction fee | 2 to 3 USD per MMBtu, about 30 to 40% of the cost at the export plant (calculated)9 |
| Shipping | Set by charter rates of roughly 20,000 to 94,000 USD per day and voyage length2 |
| Regasification | Small in energy terms (under 1% of the gas); terminal fees vary by contract8 |
A liquefaction plant typically runs 20 years or more on long-term contracts that pay its fixed fee whether or not cargoes are lifted, which lets it raise debt. The Qatar outage widened the gap between European prices and US contract costs; Argus estimated US term contracts would stay profitable in Europe until about winter 2029 to 2030. Over land, pipelines are cheaper per unit.
Sources
- 2025 World LNG Report International Gas Union, 2025
- Analysis of the greenhouse gas intensities of LNG imports to Germany (Munter and Liebich), final report ifeu for Wissenschaftsplattform Klimaschutz, 2023
- Qatar outage widens US-European LNG spread to 2029 Argus Media, 2026
- Alaska LNG could cost more than double Gulf Coast rivals, raising questions over economics (Reuters) gCaptain, 2026
- Venture Global's CP2 LNG project cost climbs $4 billion to $33.5 billion Pipeline and Gas Journal, 2026