What excites and concerns LNG exporters by 2026? Maguire

In 2025, the LNG industry will make history after the production and exports of super-chilled fuel broke records and generated billions in revenue across the global supply chain of liquefied gas.

The 25% increase in LNG purchases in Europe was a major highlight. This gave gas sellers hope that gas consumption in countries like Germany, Italy and the United Kingdom will continue to grow in 2026.

Three of the top five LNG buyers - all in Asia - are reducing their imports, which has raised concerns among exporters who hope to sell the increased volumes of LNG that will be available this year.

Here are the LNG industry's top growth markets for 2026.

EUROPE STAYS POWER

In 2025, the steep rise in LNG purchases in several European countries begs the question of whether the region is able to sustain this voracious appetite.

The good news is that Europe's electricity generation from gas-fired plants saw its first annual increase last year, since the Russian invasion of Ukraine in 2022 slowed regional gas flow.

According to the?think-tank Ember, the total European gas-fired electric output from January to November was 1,009 Terawatt hours (TWh), up 3.4% compared to the same months of 2024. This is the first increase year-over-year for this period since 2021.

The demand for LNG will increase as gas-fired electricity continues to grow, particularly in markets where there are shortages of other?power sources.

The European industrial economy is still hampered by a weak consumer and manufacturing demand. In Germany, the top regional producer, output in gas-intensive industries such as chemicals and fertilisers remains at historic lows.

It's possible that Europe's demand for LNG will remain patchy until a synchronized upturn in business and consumer activity takes hold. This could limit any future increases in LNG imports in the near-term.

A question that LNG exporters should ask is whether the price of LNG in Europe for 2025 was artificially increased as some countries tried to reduce their trade deficits with the United States through trade negotiations with the Trump administration.

Data from commodities intelligence company Kpler show that European imports from the U.S. of LNG last year increased by almost 60% compared to 2024 levels.

The?outsized increase in U.S. LNG purchases is well above Europe's total LNG imports. This suggests that the region was trying to curry favor with President Donald Trump while European and U.S. trade policymakers were discussing trade deals.

In 2026, with the international focus shifting to geopolitical issues - like the U.S. desire to acquire Greenland – it's possible that European nations will be less eager to please President Trump.

If this is the case, then volumes of U.S. imports of LNG aimed at reducing 2025 trade deficits may be curtailed in 2026.

ASIA'S PLATEAU?

Kpler data shows that LNG exporters are also concerned about the demand for LNG in Asia. Around 64% of LNG imports were made from Asia last year.

The total shipments of goods to Asian buyers in 2018 were just under 613 million cubic metres, a drop of nearly 5% from 2024.

Although a volume decline of 5% was not much of a problem through 2025, given the rapid growth in Europe sales, LNG exporters may be concerned if Asia's appetite for LNG remains low this year and Europe also slows down its buying pace.

China and Japan, the two largest LNG importers, will reduce their LNG imports by 15% and 2% in 2025.

In 2026, the synchronized drop in imports from?critical markets? will continue to be a concern. This is especially true if China's economic growth remains slow and trade relations between China and the United States remain frozen.

Concern is also raised by the rapid expansion of renewable energy in China, and the steady recovery of nuclear power in Japan. These power sources are reducing gas in generation.

India, the number four LNG importer, also saw its LNG purchases drop by 7% in 2013. This is a source of concern for LNG exporters that had hoped India was a market with steady growth.

The higher global gas prices in India have led to a steady decline of gas-fired power generation so far in this decade. This has also brought a sharp reduction in the spending on gas storage and distribution infrastructure.

Forecasters who are bullish say that the planned LNG exports, which will continue to grow in volume, will lower global prices and reignite the demand for fuel in countries like India and Pakistan.

It may be true, but benchmark natural gas prices are nearing three-year highs. And with the United States being the world's largest gas producer, it could be difficult for LNG exporters in the short term to lower sale prices.

In 2026, LNG exporters may have to focus on the already established markets. They will struggle in Europe to increase sales from last year levels. And in Asia, demand is patchy as China struggles with growth.

These are the opinions of a columnist who writes for.

You like this article? Check it out

Open Interest

The new global financial commentary source (ROI) is your go-to for all the latest news and analysis. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on

You can find us on LinkedIn.

(source: Reuters)