Outlook 2025: Timing is everything for LNG

The disconnect between export terminals coming online and vessels being available to transport cargoes means shipping rates are not looking so good, at least in the short term

At this point, all reservations about the medium-to-long-term outlook for growth in the LNG industry seem to be put to rest. New export terminals are ramping up operations in the US, Canada and Africa, with more not far behind in Qatar, Mexico and a smattering of other locations. With just the projects under construction, we expect the industry to grow by almost 50% by the end of the decade relative to 2023 levels. If that were not enough, the pipeline of new projects likely to make FIDs in the next 24 months should keep the cargo count growth at a frothy pace well into the next decade. All the pricing thus far remains strong given the solid elasticity of demand, particularly in Asia.