IEA Reports Record 300Bcm LNG Capacity Surge by 2030 Transforming Global Markets

The International Energy Agency (IEA) forecasts a transformative surge in liquefied natural gas (LNG) production capacity by 2030, primarily driven by projects in the United States and Qatar, which could add about 300 billion cubic meters of export capacity. This expansion is expected to shift global gas markets from sellers' to buyers' markets, leading to lower LNG prices and enhanced supply security following disruptions caused by Russia's invasion of Ukraine. The increased supply is anticipated to alleviate market pressures, potentially reviving demand in price-sensitive regions, especially in Asia, where LNG importers stand to benefit significantly. Despite this growth, the IEA notes that elevated gas prices have restrained consumption, with global demand growth projected to slow from 2.8% in 2024 to below 1% in 2025. Additionally, the LNG price decline poses mixed impacts for exporters like Malaysia's Petronas, which may face reduced revenues, while lower prices could benefit regional power sectors reliant on natural gas. The IEA also highlights growing power demand driven by data centers and air conditioning, alongside a resurgence of nuclear power and interest in small modular reactors, indicating broader shifts in global energy dynamics.