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11 min ago 4 min read
The liquefied natural gas industry’s flexibility and resilience during this year’s energy crisis has enhanced its role as a ‘shock absorber’ to the global economy, according to the International Gas Union’s (IGU) World LNG report.
While LNG is not immune from heightened geopolitical uncertainty, the report found LNG’s ability to redirect cargoes, utilise a growing spot market and leverage increasingly liquid trading hubs helped contain the impact of supply disruptions and maintain energy supplies to consuming markets.
With Ras Laffan’s operations impacted by four months of disruption, and now facing challenges and , buyers have scrambled to secure alternative cargoes from the US and Australia.
The report’s upbeat tone follows a series of warnings over market supply and prices.
The combined effect of short-term supply losses and slower capacity growth could result in a cumulative loss of around 120 billion cubic metres of LNG supply between 2026 and 2030, the International Energy Agency . Last month Wood Mackenzie forecasted that LNG prices will remain .
It is also in contrast to sentiments surrounding byproduct helium, which has been hit by around a third of global supply coming offline from Qatar, impacting semiconductors and AI, healthcare and manufacturing. The industry is watching carefully to see if current disruptions prove to be a .’
Global LNG trade reached a record 437 million tonnes in 2025, up 6.3%, driven by expanding supplies from the US, Qatar and other producers, while Canada and Mauritania/Senegal joined the ranks of LNG-exporting nations for the first time, the IGU report stated. Canada signed its first long-term supply deal with Europe at the .
Europe recorded the strongest import growth, rising by 26.1 million tonnes to 126.2 million tonnes as it diversified away from Russian pipeline gas.
Overall LNG demand fundamentals remain robust through 2035, underpinned by population growth, urbanisation, industrialisation, rising electricity consumption, digitalisation and rapid expansion of data centres and AI infrastructure, the report adds.
Global liquefaction capacity under construction and approved for development is expected to drive significant supply growth through to the end of the decade, helping to meet increasing demand across both mature and emerging economies, the report adds.
The US remains the world’s largest LNG exporter, supplying 110.7 million tonnes, and global liquefaction capacity reached 524.5 million tonnes per annum (mtpa) by the end of 2025. LNG bunkering continued rapid growth, supported by tightening maritime emissions regulations and increasing demand for low-emission marine fuels.
More than 1,100 mtpa of proposed liquefaction capacity remains under development globally.
Menelaos Ydreos, Secretary General of IGU, said the report also identifies emerging opportunities with the increasing adoption of floating LNG technologies and innovation aimed at reducing emissions across the entire LNG value chain.
“Continued investment, supportive policy frameworks and secure global trade routes will be essential to maintaining market stability and ensuring that LNG can continue to provide reliable, affordable and low-emission energy to billions of people worldwide,” he said. “LNG is well positioned to remain a cornerstone of the global energy system.”
