The new reality for LNG developers 

North America’s liquified natural gas (LNG) industry is entering one of the largest expansion cycles in its history, with LNG export capacity across North America expected to more than double from 11.4 Billion Cubic Feet per day (Bcf/d) or 88 Million Tonnes per annum (MTPA) in 2023 to 24.4 Bcf/d or 190 MTPA by 2028 as new projects come online in the North America.[i]

LNG facilities require enormous amounts of electricity for liquefaction, compression, and supporting infrastructure. Securing that power has always been an important part of project development, but it is becoming a linchpin of project execution as demand for electrical infrastructure accelerates across multiple sectors.

LNG developers are no longer competing only with one another for access to power infrastructure. Electricity demand is rising across the economy, driven in part by the rapid growth of hyperscale data centers, advanced manufacturing, and other sectors. The International Energy Agency predicts that global data center electricity demand will more than double by 2030 [ii], increasing competition for generation equipment, transformers, engineering expertise, and grid capacity. LNG operators, manufacturers, utilities, and data center operators are all drawing from the same finite pool of resources, making it more difficult to bring new projects online.

Demand isn’t the issue. Natural gas is abundant, and long-term market fundamentals remain strong. Global energy security concerns and continued investment in export infrastructure have reinforced the commercial case for LNG. The challenge is execution.

Today, project schedules are often driven by the ability to secure power generation equipment, obtain grid access, and coordinate the electrical infrastructure required to support construction and operations. Simply put, the industry’s problem is no longer finding customers for LNG; it’s bringing capacity online fast enough to meet demand.

The infrastructure bottlenecks behind project delays

For many LNG projects, the first hurdle is obtaining the equipment needed to power the facility.

Gas-fired combustion turbines remain in high demand, while transformers and other critical electrical components carry order backlogs that stretch well beyond historical norms. Even when funding is available, developers may find that key equipment cannot be delivered quickly enough to support aggressive schedules.

Grid interconnection presents another significant hurdle. Even when equipment can be secured, connecting a major LNG facility to the grid is rarely straightforward. Utilities must evaluate each large industrial load within the context of overall system reliability, often requiring upgrades, detailed analyses, and coordination between multiple stakeholders before a project can proceed. And as new industrial facilities, data centers, and energy projects enter interconnection queues, the process becomes harder to navigate.

Permitting and transmission infrastructure can also affect project schedules, particularly when projects require regional coordination across multiple jurisdictions. While every project faces different obstacles, the cumulative impact can add months, or even years, to schedules.[iii]

Speed-to-Power as a project strategy 

In response, many project owners are rethinking how power infrastructure is planned, procured, and delivered.

Rather than approaching substations, grid connections, automation systems, power quality solutions, and energy management technologies as separate workstreams, leading organizations are taking a more integrated approach designed to accelerate deployment and reduce delivery risk.

Three approaches are becoming increasingly important.

• Standardization simplifies engineering and procurement processes while reducing complexity across large projects.
• Modularization shifts fabrication and testing off-site, improving schedule certainty and accelerating field installation.
• Integrated delivery models can reduce interface risk between engineering, procurement, and construction activities. In complex LNG projects, even relatively small scope gaps between multiple vendors can create significant commissioning delays. Aligning responsibilities across the project lifecycle helps improve visibility, simplify execution, and reduce risk.

Some developers are also evaluating behind-the-meter power strategies that allow dedicated generation assets to be deployed directly at the project site, reducing reliance on utility interconnection timelines and giving operators greater control over project schedules.  

Power readiness will shape the next wave of LNG growth 

North America’s LNG opportunity remains substantial, with export volumes forecast to continue climbing as additional export terminals begin operations over the next several years.[iv]

For LNG developers, the takeaway is clear: power can no longer be treated as a downstream execution issue. It needs to be addressed as a core project strategy from the earliest stages of development.

That means engaging earlier with electrical infrastructure partners, such as Hitachi Energy, identifying grid and equipment constraints earlier, and evaluating standardized, modular, and integrated delivery models before schedules are locked in. It also means considering when behind-the-meter power or dedicated generation strategies may provide greater control over execution timelines.

The next wave of LNG growth will not be won by developers with the strongest demand outlook alone. It will be won by those who can translate commercial opportunities into energized, operational capacity faster. In today’s market, speed to power is speed to revenue.

[i] North America’s LNG export capacity is on track to more than double by 2028 - U.S. Energy Information Administration (EIA)

[ii] AI is set to drive surging electricity demand from data centres while offering the potential to transform how the energy sector works - News - IEA

[iii] https://www.congress.gov/crs_external_products/R/PDF/R47627/R47627.13.pdf

[iv] U.S. natural gas exports to grow nearly 30% by 2027 as LNG facilities ramp up - U.S. Energy Information Administration (EIA)

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