The global market for liquefied natural gas (LNG) is currently in a dynamic phase, with projections indicating significant growth in production capacity and demand over the next decade. In this article, we will present and discuss an analysis of the trends that are driving changes in the industry, based on the available data and in this article the accompanying charts.
Global LNG production capacity is set to increase by 40% by 2030, with the largest contribution to this growth expected to happen through the US and Qatar, with new, expanded projects set to come on stream between 2025 and 2030. While Australia and other regions that have dominated the LNG market to date will continue to account for a significant share of global supply, the shift in emphasis to the US and Qatar is clearly marked by strategic infrastructure expansion plans.
Periods known as 'dry years', or stagnation in infrastructure development, suggest a temporary slowdown in new projects. Despite these obstacles, an intensification of investment activities is observed after such periods, which means that the industry is able to respond quickly to changing market conditions.
Source: IEA
The rapid growth in demand for LNG, particularly in Asian regions such as China, Japan, South Korea and India, as well as in Europe, is driven by the need to diversify energy sources and enhance energy security, among other factors. By 2032, global demand is forecast to reach around 900 billion cubic metres per year. This growth will be supported by a number of new projects that are currently at various stages of investment decisions, both those already approved (FID) and those in the pre-FID phase.
Market projections to 2030 paint a picture of LNG as a key player in the global energy sources market, with North America and Qatar leading the way. At the same time, Asian countries will continue their role as major consumers of LNG, highlighting their growing energy demand and desire for greater energy security. Investment in new projects and expansion of LNG infrastructure will be key to maintaining a balance between growing global demand and stable supply. These measures are essential not only to meet current needs, but also to ensure long-term, stable and secure access to energy worldwide, which is extremely important in the context of global struggles with climate and environmental issues.
