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Released September 12, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--More investments may be necessary in the liquefied natural gas (LNG) sector to keep pace with future demand, particularly as Asian economies draw on more supplies, a global report found.
Natural gas demand increased globally 1.9% annually in 2024, and is on pace to increase another 1.7% this year, the International Gas Union (IGU) reported on Wednesday.
"Power consumption is expected to surge in China and India, thus driving an increase in natural gas demand, positioning Asia as the key driver of global energy demand, supported by growth in North America," the report found.
Supplies, meanwhile, expanded for the 11th consecutive year, with the U.S., Qatar and Australia establishing themselves as the premier producers. Of those, the U.S. is the world leader in exports of LNG, a position that could be unrivaled given the rush of new projects sanctioned since President Donald Trump returned to office in January.
The market so far this year saw demand growth concentrated in the European and North American markets. In Europe, U.S. LNG shipments are supporting energy security at a time when Russia, along with its vast natural gas reserves, is pivoting toward Asia as war-related sanctions sideline it from the European bloc.
Trump, who created a council of energy dominance to further stimulate the industry, brokered a free-trade agreement with European trading partners that calls for significant purchases of LNG, though the details suggest offtake agreements won't match the commitments outlined in the pact.
Higher prices, along with increased competition from European countries, have limited the purchasing power of energy-hungry markets such as China and India, the IGU said. That could change, however, as the decade winds down.
"Observed trends suggest global energy demand is expected to follow an upward trajectory over the next decade, especially leading up to 2030," the report read.
On Wednesday, Glenfarne Group (New York, New York), which is steering development for the Alaska LNG project, signed a letter of intent to deliver supplies to Japanese energy company JERA Company Incorporated (Tokyo). The handshake is important as Japan lacks natural resources of its own, drawing heavily on foreign shipments to meet demand.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
The IGU, however, finds that a warming planet and the advance of new technologies such as artificial intelligence (AI) are driving further demand, while there's a layer of uncertainty on the timing of the next batch of commercially active LNG centers. While Trump has pushed hard for new developments, for example, not every project will make it to the finish line.
If trends continue, the IGU found, demand growth will likely outpace supplies by 2030, and the industry must react.
"Targeted investments in natural gas and LNG supply, infrastructure, and storage are thus required to meet potential shortfalls and mitigate energy uncertainty," the report read. "Natural gas can act as a force of resilience supporting long-term sustainability and energy security by meeting rising power demand, and enhancing geopolitical stability through reliable, diversified supply."
That jives with a recent assessment from Maria Sanchez, a senior natural gas analyst at IIR Energy, who said market players may need some stronger signals to incentivize new investments.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Natural gas demand increased globally 1.9% annually in 2024, and is on pace to increase another 1.7% this year, the International Gas Union (IGU) reported on Wednesday.
"Power consumption is expected to surge in China and India, thus driving an increase in natural gas demand, positioning Asia as the key driver of global energy demand, supported by growth in North America," the report found.
Supplies, meanwhile, expanded for the 11th consecutive year, with the U.S., Qatar and Australia establishing themselves as the premier producers. Of those, the U.S. is the world leader in exports of LNG, a position that could be unrivaled given the rush of new projects sanctioned since President Donald Trump returned to office in January.
The market so far this year saw demand growth concentrated in the European and North American markets. In Europe, U.S. LNG shipments are supporting energy security at a time when Russia, along with its vast natural gas reserves, is pivoting toward Asia as war-related sanctions sideline it from the European bloc.
Trump, who created a council of energy dominance to further stimulate the industry, brokered a free-trade agreement with European trading partners that calls for significant purchases of LNG, though the details suggest offtake agreements won't match the commitments outlined in the pact.
Higher prices, along with increased competition from European countries, have limited the purchasing power of energy-hungry markets such as China and India, the IGU said. That could change, however, as the decade winds down.
"Observed trends suggest global energy demand is expected to follow an upward trajectory over the next decade, especially leading up to 2030," the report read.
On Wednesday, Glenfarne Group (New York, New York), which is steering development for the Alaska LNG project, signed a letter of intent to deliver supplies to Japanese energy company JERA Company Incorporated (Tokyo). The handshake is important as Japan lacks natural resources of its own, drawing heavily on foreign shipments to meet demand.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
The IGU, however, finds that a warming planet and the advance of new technologies such as artificial intelligence (AI) are driving further demand, while there's a layer of uncertainty on the timing of the next batch of commercially active LNG centers. While Trump has pushed hard for new developments, for example, not every project will make it to the finish line.
If trends continue, the IGU found, demand growth will likely outpace supplies by 2030, and the industry must react.
"Targeted investments in natural gas and LNG supply, infrastructure, and storage are thus required to meet potential shortfalls and mitigate energy uncertainty," the report read. "Natural gas can act as a force of resilience supporting long-term sustainability and energy security by meeting rising power demand, and enhancing geopolitical stability through reliable, diversified supply."
That jives with a recent assessment from Maria Sanchez, a senior natural gas analyst at IIR Energy, who said market players may need some stronger signals to incentivize new investments.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
