New Report: Global LNG Outlook 2024-2028

Despite growth in global LNG production capacity, the total output is likely to remain constrained due to operational challenges.

SEATTLE (Oil Monster): According to latest report published by the Institute for Energy Economics and Financial Analysis (IEEFA), the global LNG industry will see the fastest capacity growth in its history starting in late-2024. The industry is projected to add as much as five times new liquefaction capacity from 2025 to 2028, in comparison with the previous four-year period.

The U.S. and Qatar will account for majority of the LNG capacity expected to be completed by 2028. Also, Russia, Canada and African countries are seen constructing substantial additional capacities. Incidentally, the global LNG supply capacity is expected to increase 40% by 2028.

Despite growth in global LNG production capacity, the total output is likely to remain constrained due to operational challenges. LNG supply is also likely to face challenges due to maritime disruptions.

The lackluster demand growth coupled with massive new export capacities may send the global LNG markets to oversupply within two years. The LNG imports by Japan, South Korea and Europe will continue to see decline through 2030. The structural LNG demand growth may face multiple challenges in emerging Asian markets. IEEFA expects global LNG supply capacity to touch 666.5 MTPA by end-2028.