Sluggish Growth in LNG Exports Threatens Market Stability and Prices

The LNG market faces sluggish growth and rising prices due to project delays and a shortage of new supplies.

Content

Export Slowdown
Delayed Projects
Market Balance

Export Slowdown

Sluggish global supply increases pressure on prices
Global LNG exports have experienced their slowest growth since 2015,
with shipments expected to rise by only 0.4% year-on-year to approximately 414 million tons in 2024,
according to “Kpler” data. Delays in completing projects in the United States and sanctions on Russia’s
latest gas production facility have restricted new supply to the market,
keeping prices high and burdening buyers in key markets such as Europe and Asia.

Delayed Projects

The market faces disruptions and awaits new ventures
Since the invasion of Ukraine in 2022, the LNG market has been delicately balanced due to reduced Russian pipeline supplies to Europe,
which has increasingly relied on LNG.
The lack of new exports has left the market vulnerable to price volatility,
though improvements are expected by 2025 with new projects coming online in the United States and Canada.

Market Balance

The U.S. and China lead the global rankings
The United States maintained its position as the world’s largest LNG exporter in 2024,
with record shipments of 87 million tons.
Meanwhile, China remained the top LNG importer for the second consecutive year, importing over 78 million tons,
an 8.5% year-on-year increase.
However, imports remain slightly below the 2021 level of around 80 million tons.

The sluggish growth in supplies highlights the need for investment in new projects to ensure market stability
and meet growing demand in the future.

Sluggish Growth in LNG Exports Threatens Market Stability and Prices

Sluggish Growth in LNG Exports Threatens Market Stability and Prices

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