A surge in natural gas exports

Summary

Marketplace Morning Report — "A Surge in Natural Gas Exports"

Date: May 15, 2026
Host: Nancy Marshall Genser
Main Theme:
This episode explores the significant rise in U.S. natural gas exports—driven by new and expanding LNG projects along the Gulf Coast—and situates this surge within the broader context of Middle East conflict, global energy prices, and shifting geopolitical and economic dynamics. The show also updates listeners on U.S.-China trade talks, inflation pressures, and bond market reactions.

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Key Segments and Discussion Points

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1. U.S.-China Trade Talks: Boasts & Ambiguity

[00:59–02:05]

• President Trump returns from a summit with President Xi Jinping claiming China will "buy more American products," notably oil and airplanes.
  • Quote: “Beijing will buy oil from the US and said Chinese leaders agreed to buy 200 Boeing jets.” — Henry Epp, [01:21]
• U.S. Trade Representative Jameson Greer says China committed to buying “more American agricultural products” including 25 million tons of soybeans, though these commitments are not confirmed by Beijing.
• The Chinese Ministry of Foreign Affairs issued a statement calling the meetings “generally balanced and positive” and promising to “open its door wider.”
• Contextual Insight: Despite optimistic rhetoric, specifics about new Chinese purchases remain scant and unconfirmed.

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2. Import and Export Prices: The Inflation Story

[02:05–03:37]

• With Gus Faucher, Chief Economist, PNC Financial Services Group
• Import prices rose almost 2% last month, about half of which was attributed to the war in the Middle East.
  • Even excluding petroleum, import prices grew by 0.7% month-over-month.
  • Quote: “That’s an indication that the price pressures we’re seeing in the economy are not coming only from oil… but just general inflation throughout the US and global economies.” — Gus Faucher, [02:23]
• Inflation fears are driving bond yields higher. Causes include:
  • Expectations of Federal Reserve rate hikes due to persistent inflation.
  • Ongoing large federal budget deficits pushing the government to borrow more.
  • Quote: “There's no indication that anyone in Washington has any intention of deficit reduction… that's putting upward pressure on borrowing costs as well.” — Gus Faucher, [02:57]

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3. The U.S. Natural Gas Export Boom

[04:54–08:01]

• U.S. natural gas exports set to increase 30% over the next 18 months, powered by new LNG projects, especially along the Gulf Coast (e.g., Corpus Christi).
  • The tightening in global LNG supplies—20% of world’s natural gas has been taken offline due to Middle East conflict—fuels demand.
• Scene: Port of Corpus Christi
  • President Trump, standing before tankers and “American Energy Dominance” signs, boasts about LNG exports reaching “the highest level in American history and going up a lot.” [05:40–05:51]
• Industry Growth:
  • Corpus Christi’s LNG shipments are “actually up about 40%” vs. same period last year.
    • Quote: “LNG shipments this year are actually up about 40% over the same period last year.” — Kent Britton, CEO, Port of Corpus Christi, [06:09]
  • U.S. now exports around 20 billion cubic feet of LNG daily — from “basically zero” just a decade ago.
    • Quote: “The U.S. is now the largest supplier of LNG in the world, with plans to grow significantly more over the next 10 years.” — Ross Wayneau, S&P Global Energy, [06:33]
• Economic Impact:
  • Investments in Gulf Coast facilities have created local construction jobs—fewer long-term jobs, but high-wage positions.
    • Quote: “Much smaller footprint in terms of total labor, but they are very high wage jobs.” — Jesse Thompson, Dallas Fed, [06:58]
• Risks and Uncertainties:
  • War may make global buyers see the U.S. as a safer source but creates “concentration risk.”
  • U.S. LNG hubs vulnerable to hurricanes and political uncertainty; buyers may look at other producers (Canada, Algeria) or pivot away from gas altogether.
    • Quote: “High LNG prices, the risk of this large portion of global supply getting cut off, and just price volatility in general are not good for demand creation.” — Ross Wayneau, [07:50]
  • If crisis-hit countries reduce gas use, the viability of new U.S. LNG projects may be threatened.

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Notable Quotes & Moments

• On inflation and bond markets:
  “All of this is contributing to these higher long term interest rates that we're seeing in the economy.” — Gus Faucher, [03:31]
• On global LNG leadership:
  “The U.S. is now the largest supplier of LNG in the world, with plans to grow significantly more over the next 10 years.” — Ross Wayneau, S&P Global Energy, [06:33]
• On job quality despite smaller labor footprint:
  “Much smaller footprint in terms of total labor, but they are very high wage jobs.” — Jesse Thompson, Dallas Fed, [06:58]
• On ongoing risks:
  “High LNG prices, the risk of this large portion of global supply getting cut off, and just price volatility in general are not good for demand creation.” — Ross Wayneau, [07:50]

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Timestamps for Key Segments

• [00:59–02:05] – U.S.-China trade talks and the ambiguity of agreements
• [02:05–03:37] – Inflation, import/export prices, and bond market analysis
• [04:54–08:01] – Deep dive into the U.S. natural gas export boom: statistics, local impact, risks
• [06:09–06:58] – Insights from Corpus Christi port, S&P Global Energy, and the Dallas Fed

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Summary

This episode succinctly tracks the mounting global and domestic economic pressures from trade deals with China and Middle East war-induced energy shortages, then spotlights the American LNG export boom as both a major business opportunity and a source of new economic risks. Listeners come away with a clear, current snapshot of how global conflict and investment are re-shaping U.S. energy and financial markets.

Transcript

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[Nancy Marshall Genser]

inflation and imports From Marketplace, I'm Nancy Marshall Genser in Washington. First, President Trump is headed back to the US After a summit with Chinese leader Xi Jinping. Trump and other administration officials said China agreed to buy more American products, but the deals are light on specifics, Marketplace's Henry Epp reports.

[Henry Epp]

In a Fox News interview, President Trump said Beijing will buy oil from the US and said Chinese leaders agreed to buy 200 Boeing jets. Meanwhile, US Trade Representative Jameson Greer told Bloomberg that China committed to buying more American agricultural products. That includes 25 million tons of soybeans per year, an amount previously announced by the White House late last year. So far, though, Beijing has not confirmed specific new purchases of oil jets or American crops, according to multiple media reports. But in its official statement on the talks, the Chinese Ministry of Foreign affairs said economic and trade meetings this week, quote, produced generally balanced and positive outcomes. And it said China will open its door wider. I'm Henry Epp for Marketplace.

[Nancy Marshall Genser]

We got another read on prices yesterday. For more, let's turn to Gus Faucher. He's chief economist at the PNC Financial Services Group. Gus, yesterday we saw increases in the US Import and export port price indexes. How much of that increase was caused by the war in the Middle East?

[Gus Faucher]

Well, about one half of it was, but we saw an almost 2% increase in import prices. But even taking out petroleum, we saw Import prices increase about 7.10of a percent on the month. That's an indication that the price pressures we're seeing in the economy are not coming only from oil, but also from other goods that are having difficulties in transmitting through the Strait of Hormuz, but just general inflation. Throughout the US and global economies, inflation

[Nancy Marshall Genser]

fears are getting bond traders attention. Bond yields are up. What's going on there?

[Gus Faucher]

It's a couple of factors. Some of it is expectations that the Fed might hike higher inflation that we're seeing in the US Economy and concern that could spread over the longer run. But also I think a lot of it is coming from large federal government budget deficits. There's no indication that anyone in Washington has any intention of deficit reduction. And so if the federal government is out there borrowing trillions of dollars every year, that's putting upward pressure on borrowing costs as well. So all of this is contributing to these higher long term interest rates that we're seeing in the economy.

[Nancy Marshall Genser]

Gus Faucher, chief economist at the PNC Financial Services Group. Thank you so much.

[Gus Faucher]

Thank you. Nanc.

[Nancy Marshall Genser]

Foreign.

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[Nancy Marshall Genser]

US natural gas exports are expected to grow 30% over the next year and a half. That growth is driven mostly by new and expanding LNG export projects along the Gulf coast in places like Corpus Christi. At a time when roughly 20% of the world's natural gas supply has been taken offline because of the war in the Middle East. Marketplace's Elizabeth TR Oval has more.

[Elizabeth Trovall]

I want to take you back to the day before the US bombed Iran. February 27th. At the port of Corpus Christi, President Trump stands in front of a crude oil tanker and blue signs that say American Energy Dominance.

[Various Energy Experts]

Slashing energy costs is among the most important actions we can take to bring down prices for American consumers.

[Elizabeth Trovall]

But on that late February day before global oil and gas prices soared, he also boasted about liquefied natural gas exports increasing so much.

[Various Energy Experts]

They're at the highest level in American history and going up a lot.

[Elizabeth Trovall]

That's true. And Corpus Christi is one of the hubs on the Gulf coast where LNG exports are growing. I went down to the port of Corpus Christi a few weeks ago where CEO Kent Britton told me business is booming.

[Gus Faucher]

LNG shipments this year are actually up about 40% over the same period last year.

[Elizabeth Trovall]

That's as more natural gas is piped down from West Texas and New Mexico.

[Gus Faucher]

There is a lot more gas to be discovered easily in the Permian than than oil. LNG is the growth story of the next decade.

[Elizabeth Trovall]

Ross Wayneau with S and P Global Energy says the US is now exporting roughly 20 billion cubic feet per day

[Various Energy Experts]

of LNG, up from basically zero a little over 10 years ago. So it's been a massive increase. The US is now the largest supplier of LNG in the world, with plans to grow significantly more over the next 10 years.

[Elizabeth Trovall]

Wayno says a lot of that LNG is sold to utilities in Asia and that business boosts local coastal economy. Says Jesse Thompson, an economist with the Dallas Fed.

[Various Energy Experts]

We had a huge amount of investment in the Gulf coast economy in terms of just the equipment and manpower and construction and then the plants themselves. Much smaller footprint in terms of total labor, but they are very high wage jobs.

[Elizabeth Trovall]

The question now is, will this war bring even more investment?

[Various Energy Experts]

Ross Bueno Again, these buyers may be interested in finding a more secure source of supply that could encourage them to sign up for a contract potentially in the us But I will note that the US is also facing concentration risk.

[Elizabeth Trovall]

Having so much LNG come out of the Middle east has proven to be risky. The US has its own risk. Think hurricanes and politics. So LNG buyers may choose other sellers like Canada or Algeria, or move away from natural gas altogether.

[Various Energy Experts]

High LNG prices, the risk of this large portion of global supply getting cut off, and just price volatility in general are not good for demand creation.

[Elizabeth Trovall]

If the countries getting hit hard by today's energy crisis decide to use less natural gas than they planned, that could ultimately hurt the new US LNG plants in coastal communities like Corpus Christi. I'm Elizabeth Trovall for Marketplace.

[Nancy Marshall Genser]

Marketplace exists to help you stay informed about the economy. You can put that knowledge to the test. Every Friday we publish a news quiz online. Find it on our website, marketplace.orgquiz in Washington, I'm Nancy Marshall Genser with the Marketplace morning report. From apm, American Public Media.

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