The International Energy Agency (IEA) has released a report warning that global liquefied natural gas (LNG) markets are expected to remain tight through 2027. The forecast is based on limited new export capacity coming online and sustained demand, particularly from Asia and Europe.
According to the IEA's latest quarterly gas market report, global LNG supply growth will slow significantly in 2026 and 2027, as few new liquefaction projects are scheduled to start operations. This comes after a period of rapid expansion in 2024-2025, driven by projects in the United States and Qatar.
European countries, which have increased LNG imports to replace Russian pipeline gas, will continue to face competition with Asian buyers for spot cargoes. The IEA notes that any unplanned outages or colder-than-expected winters could further tighten the market and push prices higher.
The report also highlights that while new LNG capacity is expected to come online after 2027, the immediate outlook suggests a period of constrained supply and potential price volatility. The IEA advises governments and companies to prepare for continued market tightness.
