Qatar Energy CEO: By 2030, the LNG glut may be reduced to a gap due to AI power requirements.

Qatar Energy CEO Saad Al-Kaabi said on Monday that the expected global glut of liquefied gas could become a shortage in 2030 due to rising demand for gas and fuels, particularly in Asia.

The LNG supply expected between 2026-2029, including projects such as Golden Pass LNG in the U.S. Gulf Coast region and Qatar's North Field Expansion are likely to be significant.

Kaabi added that the demand expectation has increased "primarily due to...AI and data center needs". He told LNG2026 that if all of this pans out there will be a deficit, not an oversupply, by 2030. The energy executives who attended the event were bullish on LNG's long-term prospects, but opinions varied on how much a new wave of supply would impact prices in this decade. Shell CEO Wael Sawan stated that "the world adds the energy demand for Switzerland every month" until 2050. LNG demand is expected to increase to 650-700 millions metric tons in 2040, from 415 million ton today.

ConocoPhillips CEO Ryan Lance predicted that global LNG demand would double over the next 20 years. The market will grow from 400 million to 600 millions tons in 2030, and 800 million tons in 2050.

ASIA IN FOCUS

The executives pointed out that Asia, with China and India at the forefront and population growth in other parts of the world, will be the major driver of future demand.

Kaabi says that India's plan to increase gas from 6-7% to 15% by 2030 should lead to a surge in LNG demand.

Data centres are a major demand in the developed Asian countries, such as Japan and Korea.

Analysts expect Asia's LNG consumption to increase by 4 to 7 percent this year, as lower prices will encourage more spot purchases, fuel switching, and stockpiling.

Sawan highlighted that the use of LNG for trucking has increased in China and India in the last two to three year, along with the rising demand from ships as they switch from heavy fuel oils.

Lance also said that Southeast Asia would play a significant role in the?growth of demand, since several ASEAN countries, which were once net exporters, are now net importers because their populations have grown.

Price Outlook

Some executives predicted that LNG prices would soften in the coming years due to a?new supply entering the market and releasing new demand from buyers who are price sensitive. Others said project delays may tighten the market.

Exxon Mobil's CEO Darren Woods said: "This is a business with a long-term horizon. You make investments that are based on where you see the demand long-term." Reporting by Emily Chow in Doha, Yousef in London, Marwa in London, Editing by Louise Heavens and Emelia Sithole Matarise, Alexander Smith

(source: Reuters)