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U.S. LNG Exports to the Caribbean Surge Toward Record Highs: What 2025 Reveals About Regional Demand and Infrastructure

  • Writer: Tony Zelinski
    Tony Zelinski
  • Mar 21
  • 3 min read
U.S. LNG Exports to the Caribbean Surge Toward Record Highs: What 2025 Reveals About Regional Demand and Infrastructure
U.S. LNG Exports to the Caribbean Surge Toward Record Highs: What 2025 Reveals About Regional Demand and Infrastructure

The Caribbean LNG market is undergoing a quiet but meaningful transformation—and the United States is at the center of it. According to the latest EIA analysis, U.S. LNG exports to Caribbean destinations reached approximately 0.3 Bcf/d in 2025, marking the second‑highest annual volume since the first Sabine Pass cargo sailed in 2016.


For a region historically constrained by infrastructure, scale, and cost, this growth signals a deeper shift in how Caribbean nations are sourcing and consuming natural gas.

This isn’t just a trade story. It’s a window into how small and mid‑sized economies are modernizing their power sectors, expanding regasification capacity, and increasingly relying on U.S. LNG to stabilize grids and support industrial development.


A Region Built on Limited but Expanding Infrastructure


Large‑scale LNG regasification capacity in the Caribbean is concentrated in three countries: the Dominican Republic, Jamaica, and Panama. These markets have become the backbone of regional LNG demand, collectively importing about 0.4 Bcf/d in 2024, a 32% increase from the prior year. Even more striking: 85% of those imports originated from the United States, the highest share on record.


This surge reflects both market pull and infrastructure readiness. Each country has made strategic investments:


Dominican Republic

  • Two operating regasification terminals: Andres (onshore) and Manzanillo FSRU, which began service in 2025.

  • Combined capacity: 0.7 Bcf/d.

  • A second onshore unit at Manzanillo is under construction, scheduled for 2027—timed to overlap with the FSRU’s charter expiration.

Jamaica

  • Two terminals totaling ~0.4 Bcf/d:

    • Montego Bay (onshore)

    • Old Harbour (FSRU)

Panama

  • The Costa Norte terminal provides ~0.2 Bcf/d of capacity and serves as the country’s sole regasification point.

Collectively, these three markets held ~1.3 Bcf/d of nominal regasification capacity in 2025—ample room for continued growth.


Small Islands, Big Constraints: The ISO Container Reality


Not every Caribbean nation has the scale or capital to build large regasification terminals. Countries such as Antigua and Barbuda, Barbados, Haiti, and Trinidad and Tobago rely on ISO container shipments, which can be handled at standard ports but come with higher per‑unit costs.

These micro‑markets collectively import less than 0.1 Bcf/d, but their participation underscores a broader trend: even the smallest islands are seeking alternatives to oil‑fired generation. ISO‑based LNG logistics may not be cost‑optimal, but they offer flexibility and access where traditional infrastructure is not feasible.


New Capacity on the Horizon


Two additional terminals—Puerto Cortes (Honduras) and Nassau Mini LNG (Bahamas)—are under construction and expected online by late 2026. These projects will expand the region’s ability to receive LNG and could further increase U.S. export volumes as new markets come online.

Meanwhile, Puerto Rico, despite having large‑scale regasification capacity, remains constrained by Jones Act restrictions, which limit the number of U.S.-flagged LNG carriers available for domestic shipments. Even so, Puerto Rico received 12 U.S.-origin LNG tanker shipments in 2025, out of 43 total cargoes.


Why U.S. LNG Is Winning in the Caribbean


Several structural advantages are driving U.S. dominance in the region:

1. Proximity and Shipping Economics

Shorter voyages reduce transport costs and improve scheduling flexibility—critical for smaller markets with variable demand.

2. Flexible Contracting

Caribbean buyers often prefer shorter‑term or spot arrangements. U.S. LNG, with its portfolio‑based supply and destination flexibility, fits this model well.

3. Infrastructure Compatibility

Many Caribbean terminals were designed or expanded with U.S. LNG specifications in mind, reducing operational friction.

4. Reliability and Market Depth

The U.S. remains one of the world’s most reliable LNG suppliers, with multiple export terminals and a deep upstream base.


What This Means for 2026 and Beyond


The Caribbean’s LNG story is still unfolding. With new terminals coming online, existing facilities expanding, and regional utilities continuing to shift away from oil, the demand profile is likely to grow.

For U.S. exporters, this represents a stable, geographically close market with strong long‑term fundamentals. For Caribbean nations, LNG offers a pathway to cleaner, more reliable power generation—supporting economic development and grid modernization.

The next two years will be pivotal as infrastructure projects reach completion and as countries evaluate how LNG fits into their broader energy transition strategies.










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