Editorial comment
As 2025 draws to a close, the LNG industry reflects on a year marked by shifting trade relations, geopolitical uncertainty, and fuel price volatility. This year has seen a record number of global annual final investment decisions (FIDs) for liquefaction capacity, with post-FID projects totalling over 56 million tpy worldwide.1 This FID capacity has been driven primarily by the US and experts predict that, by the early 2030s, the US will have close to 220 million tpy in liquefaction capacity, which equates to a market share of around 35% in the global LNG market.2
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At the same time, in 1H25, global natural gas demand was steadily expanding, with concentrated growth seen primarily in Europe and North America. However, the International Energy Agency (IEA) notes that, when compared with recent years, global natural gas demand growth slowed significantly in the first nine months of 2025. This is partially due to subdued demand in Asia, where both China and India have experienced notable import declines. For the full year of 2025, the IEA forecasts demand growth to slow from 2.8% in 2024 to below 1% in 2025.3
As we enter the new year, experts highlight that the LNG market is bracing for a surge in supply, primarily from the US, and is coming to terms with how low spot prices must drop to clear additional volumes.4 Reuters predicts that, if all 44 million t of forecast new LNG supply does reach the market, most of it will arrive in 2H26, meaning spot prices are likely to be weaker throughout this period as the market endeavours to absorb additional supply.4
With Europe’s growing interest in diversifying its energy mix with renewables, experts warn that European imports will slow and the US may struggle to offload its rapidly increasing capacity. Analysis from Reuters highlights that the US will need to seriously develop its export flows to key markets outside of Europe, including Asia, to offload its capacity, which means competing with the already-established LNG flows from exporters such as Qatar, Australia, Malaysia, and Russia.5
Influential industry trends such as these will no doubt be discussed heavily throughout the next year and beyond as the market attempts to negotiate fluctuating spot prices and the upcoming supply glut. Luckily, 2026 begins with some key industry events where discussions will take place. For example, the year kicks off with LNG2026, hosted in Qatar from 2 – 5 February, followed by LNGCON 2026, which will take place from 9 – 11 March in Barcelona, Spain.
Wrapping up the year with a strong note, this issue of LNG Industry features a keynote report from Kpler which dives deeper into China’s LNG import decline and explores what lies ahead for the region’s LNG demand in 2026. Our keynote report is followed by articles covering compressors, LNG bunkering and infrastructure, innovations in LNG storage, and more.
We wish all those who celebrate a happy Christmas season from LNG Industry and look forward to bringing you more LNG insights in 2026.
References
- JALLAL, C., “2025: a record year for US LNG export FIDs”, Riviera (26 September 2025), www.rivieramm.com/news-content-hub/news-content-hub/a-record-year-for-us-lng-export-fids-86259
- MOLNAR, G., “U.S. LNG FIDs breaking all records in 2025”, Global LNG Hub (24 September 2025), https://globallnghub.com/u-s-lng-fids-breaking-all-records-in-2025.html
- “Gas 2025: Analysis and forecasts to 2030”, International Energy Agency (27 October 2025), www.iea.org/reports/gas-2025
- RUSSEL, C., “LNG prices will drop in 2026 to absorb supply surge, but how much?”, Reuters (13 November 2025), www.reuters.com/markets/commodities/lng-prices-will-drop-2026-absorb-supply-surge-how-much-2025-11-13
- MAGUIRE, G., “US LNG export dominance to be tested as sellers look beyond Europe”, Reuters (21 November 2025), www.reuters.com/markets/commodities/us-lng-export-dominance-be-tested-sellers-look-beyond-europe-2025-11-21
