The global liquefied natural gas (LNG) market is experiencing significant growth, particularly noticeable since the onset of Russia’s full-scale war against Ukraine in 2022. European countries, aiming to reduce their dependence on Russian pipeline gas, have significantly increased LNG imports, leading to a sharp rise in demand for this fuel.
This is reported by Finway
Record Increase in Export Capacity by 2030
According to the International Energy Agency (IEA), from 2025 to 2030, global LNG export capacity is expected to grow by 300 billion cubic meters per year, representing a 50% increase. At the same time, about 45% of this increase will be provided by the United States, which remains the leading exporter of liquefied natural gas in the global market.
Impact of Supply Growth on the Market and LNG Competitiveness
Between 2025 and 2030, it is anticipated that the increase in supply will outpace the growth in demand. This could lead to a reduction in LNG producers’ margins while simultaneously easing price pressure for consumers, especially in Europe and Asia. Additionally, rising natural gas prices in the U.S. pose another challenge for producers.
Despite the potential decline in profitability, experts believe that LNG producers have reasons for optimism. It is expected that from 2026 onward, prices for liquefied natural gas will begin to decrease, making this fuel type more competitive compared to oil and coal. This could serve as a catalyst for further growth in global LNG demand.
“As LNG prices decline from 2026 onward, this energy source will become increasingly competitive compared to cheaper alternatives like oil and coal, which could stimulate demand for this fuel.”