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
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
3 March 2026
The killing of Iran’s Supreme Leader Ayatollah Khamenei in US–Israeli strikes marks the most serious escalation in the region in decades and a bigger potential threat to the oil market than the start of the Russia-Ukraine crisis
