Prospects for LNG demand remain unclear but supply is set to rise
LNG market poised ahead of winter
Prices hit record levels recently, well in advance of the winter demand peak, but the outlook for the market is mixed
LNG prices have been buoyed over the past year by rebounding global LNG demand—led by Asia-Pacific countries, especially China—in combination with significant constraints in production, particularly in the Atlantic basin. Europe was unable to rebuild its gas stocks and is going into the winter with significant shortfalls in reserves. Drought caused Brazil—and to a lesser extent Argentina—to raise imports, further fuelling the competition for cargoes. Returning capacity may be about to ease this tight supply-demand dynamic, but it could also be exacerbated by a severe winter. China imported 59.5mn t of LNG over the first nine months of 2021—around 22pc, or just over 13mn t, more than over the
Also in this section
16 January 2026
The country’s global energy importance and domestic political fate are interlocked, highlighting its outsized oil and gas powers, and the heightened fallout risk
16 January 2026
The global maritime oil transport sector enters 2026 facing a rare convergence of crude oversupply, record newbuild deliveries and the potential easing of several geopolitical disruptions that have shaped trade flows since 2022
15 January 2026
Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026
14 January 2026
Chavez’s socialist reforms boosted state control but pushed knowledge and capital out of the sector, opening the way for the US shale revolution
