Europe is expected to import a record-high volume of liquefied natural gas this year as stronger demand for replenishing storage sites, the phase-out of Russian supply, and continued pipeline exports to Ukraine will drive increased demand, the International Energy Agency (IEA) said on Friday.
After setting a record in 2025, European LNG imports are poised to reach a new all-time high of over 185 billion cubic metres (bcm) in 2026, the agency said in its Gas Market Report Q1 2026.
Europe’s LNG imports hit an all-time high of over 175 bcm in 2025, surging by 30% (or 40 bcm) from 2024, the report found. Key factors in the record imports were stronger domestic demand, lower piped gas imports, and higher storage injections in April-October.
European LNG netback prices remained mostly at a premium compared with key Asian markets, which incentivized flexible LNG cargoes to flow towards Europe, the IEA said.
As a result of the jump in LNG imports, the share of LNG in Europe’s primary natural gas supply surged from 30% in 2024 to 38% in 2025.
Most of the incremental LNG supply to Europe came from the United States, which boosted deliveries to Europe by 60% year over year.
In the quarterly report, the IEA noted that a surge in global LNG supply is expected to play a key role in rebalancing global gas markets in 2026, leading to stronger demand growth after a slowdown last year.
The jump in supply, mostly from North America, is expected to reduce market pressures at a time of heightened geopolitical uncertainty, the IEA said.
Global supply growth is set to accelerate in 2026 to more than 7%, its fastest pace since 2019, the agency said, echoing expectations from other forecasters.
“The unfolding LNG wave is set to have a central role in shaping global gas markets in the coming years, likely putting downward pressure on prices and improving liquidity as regional gas markets become increasingly interconnected,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.
By Tsvetana Paraskova for Oilprice.com
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