Middle East Instability Challenges Record LNG Market Growth

The International Gas Union reported a 6.3% rise in global trade volume last year, marking the strongest growth since 2022. This expansion was bolstered by initial exports from Canada and the Mauritania-Senegal project, alongside established output from North American and Qatari facilities. Europe continues to lead as the primary importer, while investment activity remains robust, with 68.4 million tonnes per annum of liquefaction capacity reaching final investment decisions in 2025.

IGU president Andrea Stegher noted that infrastructure damage and flow uncertainty have become defining features of the current landscape. However, the union maintains that the sector's ability to redistribute energy supplies effectively serves as a critical shock absorber for the global economy. Looking ahead, Shell projects that surging demand across South and Southeast Asia will drive a 65% increase in global LNG consumption by 2050, provided the industry can navigate the persistent constraints currently stalling growth near the Strait of Hormuz.