SEATTLE (Oil Monster): Global natural gas markets are moving into a new era, with pricing systems becoming more flexible and less dependent on crude oil benchmarks, according to a new report released by the International Gas Union (IGU).
The group’s 2026 wholesale gas survey highlights how the sector has become more resilient after major supply disruptions.
A key driver behind this shift is the rapid expansion of liquefied natural gas trade, especially cargoes supplied by the United States. Spot-market transactions and adaptable supply contracts are changing how gas is priced and traded worldwide, allowing buyers to respond faster during supply shocks.
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The report noted that market-based pricing now accounts for more than half of global LNG transactions, a dramatic jump from levels seen two decades ago. This transition has helped soften recent price spikes and strengthened energy security across major importing regions.
Average wholesale gas prices stood at $5.31 per MMBtu in 2025, well below the record highs recorded during the 2022 energy crisis.
The survey also pointed to Asia’s growing role in future demand growth, with China and India expected to drive expansion through infrastructure investment and import diversification.
IGU Secretary General Menelaos Ydreos said open and competitive gas markets will remain critical as global consumption continues to rise.
