After a record year for liquefied natural gas final investment decisions, research and consultancy firm Wood Mackenzie expects FID momentum to slow sharply in 2026. Only a small number of projects are likely to reach sanction, roughly half the level seen in 2025.
Nine LNG projects took FID in 2025, totalling 72 million tonnes per year. In contrast, Wood Mackenzie forecasts that only four to five projects will reach FID this year, as developers reassess timing amid a softer market outlook.
The slowdown comes as the LNG market absorbs a wave of capacity already under construction. Around 225 million tonnes per year of LNG supply is currently being built globally, with nearly 30 million tonnes expected to enter the market in 2026.
That expansion is expected to weigh on prices, with the researching consultancy firm forecasting spot LNG prices could fall below oil-linked parity, weakening the case for new project sanctions.
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