The LNG glut has been delayed, not cancelled
IEEFA was an early voice warning that an unprecedented wave of new LNG supply could leave exporters chasing too few buyers. By 2024, the International Energy Agency (IEA)’s World Energy Outlook was pointing in the same direction. Market analysts were expecting the glut to start hitting this year, causing prices to drop materially. However, the ...
The recent disruption in liquefied natural gas (LNG) supply has not completely canceled the anticipated glut, but rather delayed its onset. According to a report by the International Energy Agency (IEA), the global LNG market faced a significant supply reduction due to the conflict in the Middle East, which disrupted LNG flows through the Strait of Hormuz.
The IEA estimates that the conflict could remove approximately 140 billion cubic meters (bcm) of LNG supply from the market between 2026 and 2030, delaying the expected market-easing effects of new supply coming online. This loss represents around 15% of the new LNG supply expected to be added globally over the same period. While new projects in North America, Africa, and Australia are filling part of the gap, tight markets have become profitable for existing exporters.
High and volatile LNG prices have also begun weakening demand in Asia, as countries cancel or reconsider projects and invest in nuclear and renewable energy sources.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
