LNG export capacity projected to grow 50% by 2030

Global liquefied natural gas (LNG) export capacity is projected to grow by 50% by 2030. According to data from the International Energy Agency, facilities capable of exporting more than 330 billion cubic meters per year are scheduled to open between 2025 and 2030, marking the largest increase in export capacity in history.

This expansion is expected to influence global gas supplies and prices. While companies like Shell and ExxonMobil forecast significant long-term demand growth, an initial influx of supply may exert downward pressure on benchmark natural gas prices, such as Europe’s TTF and Asia’s JKM. This could impact profit margins for companies focused on gas extraction without long-term contracts.

In the shipping sector, strong European demand is expected to cap LNG shipping costs this winter by keeping more cargoes within the Atlantic basin. While Atlantic freight rates have declined due to increased vessel availability and shorter voyage distances to Europe, a resurgence in Asian demand could potentially constrain vessel availability and lift freight costs.