LNG demand rises due to AI growth and QatarEnergy supply shifts

The rapid expansion of artificial intelligence and data centers is expected to significantly drive liquefied natural gas (LNG) demand in Southeast Asia. According to Wood Mackenzie, the need for 24/7 reliable electricity for hyperscalers is pushing countries such as Singapore, Malaysia, Indonesia, and Thailand toward increased LNG imports as domestic gas production peaks.

Data center capacity in the region could triple to 9.4 GW by 2035, potentially increasing the annual growth rate of LNG demand by 16%. Because large-scale battery storage remains commercially unviable in the region for the next decade, combined-cycle gas turbines (CCGT) are viewed as the most reliable power source for these facilities.

Simultaneously, QatarEnergy is negotiating long-term LNG contracts with U.S. producers, including Venture Global and Cheniere, through 2031. These negotiations aim to compensate for production losses following attacks on Ras Laffan facilities. By shifting from spot market purchases to long-term agreements, QatarEnergy seeks to ensure a stable supply for its international clients, particularly in Asia, while reducing exposure to price volatility.