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Global LNG Demand Faces Deep Uncertainty Amid Volatile Markets

by Krystal

The outlook for global liquefied natural gas (LNG) demand is marked by “deep uncertainty,” said Anne-Sophie Corbeau, president of the International Group of Liquefied Natural Gas Importers (GIIGNL). Her comments signal a cautious shift from a leading voice in the industry.

Speaking at a Paris event, Corbeau noted that while long-term fundamentals remain solid, short- and medium-term demand is harder to predict. This is due to volatile prices, geopolitical tensions, and uneven economic recoveries in key Asian markets. GIIGNL’s annual report, released the same day, showed global LNG imports rose slightly to 405 million tonnes in 2024, up from 401 million in 2023. However, growth is slowing and regional demand is diverging.

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Last week, the U.S. Department of Energy resumed approving LNG export permits, ending a freeze that had delayed billions in Gulf Coast projects. Despite the earlier pause, U.S. LNG remains a major global supplier, making up nearly 30% of the market in 2024.

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Even with trade tensions, including Chinese tariffs on U.S. LNG, American exporters have kept a strong market position. Their success comes from flexible contracts, competitive prices, and good access to terminals in Asia and Europe, allowing continued growth despite regulatory and geopolitical challenges.

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Europe’s LNG imports dropped slightly in early 2025, while demand from China and South Asia showed only modest improvement. This was due to price sensitivity and increased domestic gas production in some countries. New regasification plants in Germany and India may boost demand later this year, but analysts warn that unclear long-term policies are making buyers cautious.

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Traders are closely watching how flexible contracts and spot-market deals will affect LNG flows in 2026. Qatar, the U.S., and Australia are expanding capacity in an increasingly competitive market. No major final investment decisions (FID) were announced following GIIGNL’s report.

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