KEY POINTS
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Two Gulf Coast megaprojects have already broken ground in 2025, signaling a surge in demand for liquid natural gas (LNG) construction.
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Total North American LNG export capacity is forecasted to more than double by 2028.
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Global LNG demand is projected to rise 40% from 2024 to 2030, but oversupply is possible by the end of the decade.
The Gulf Coast region is experiencing a surge in construction driven by the development of liquefied natural gas (LNG) infrastructure. Including, for example, two Texas megaprojects (construction projects worth $1 billion and up) that broke ground this year across the region.
The first megaproject is a $2 billion, 400-mile LNG pipeline aimed at expanding export access while also supporting the state’s growing power plant and data center demands. The second is Sempra’s $14 billion expansion of the Port Arthur LNG production facility.
This investment wave is a response to projected global LNG demand growth of nearly 40% from 2024 to 2030, according to BloombergNEF.
Multiple additional projects worth billions more are targeting construction start dates before the end of 2026, creating potential opportunities for Gulf Coast construction firms.
Drivers Behind the LNG Expansion
US production of natural gas doubled over the period from 2004 to 2024 as it became an increasingly important energy source on the global market. LNG serves as a cleaner alternative to coal and a reliable backup for renewable energy sources.
This graph shows the total yearly dry production of natural gas in the United States from 2004 to 2024, in Millions of Cubic Feet. Image: ConstructConnect
The growth in demand for natural gas on the global stage is largely driven by Asia, with economies like China, India, and Thailand experiencing rapid growth, according to BloombergNEF. Europe also contributes to demand as nations reduce dependence on Russian gas supplies.
Domestically, natural gas is being used to provide power to Data Centers, which have eclipsed $30 billion in construction starts value so far this year, according to the ConstructConnect Data Center Report.
An example of this usage can be seen in Meta’s data center operations in Louisiana, where energy provider Entergy plans to build natural gas power plants to supply energy to the Meta facility.
Future of LNG
Near-term liquified natural gas production and transport investment has been substantial, providing potential opportunities for Gulf Coast-based construction firms.
According to the US Energy Information Administration, North American LNG export capacity is on pace to more than double by 2028. This includes several substantial projects that remain in development, including a multi-billion-dollar Entergy natural gas plant in Louisiana, according to ConstructConnect Project Intelligence.
However, the International Energy Agency estimates the global LNG market will be notably oversupplied by 2030. This suggests the project pipeline may thin some after the near-term buildout concludes.
Firms specializing in LNG work should closely monitor these trends and prepare strategies to diversify their project pipeline or pivot if investment volumes decline.
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