GIIGNL says gas market faces high uncertainty regarding LNG demand

President of the International Group of Liquefied Natural Gas Importers (GIIGNL), Anne-Sophie Corbeau, says there is increasing uncertainty in demand forecast for this type of fuel. Despite global supply rising to 405 million tons in 2024, the growth rate is slowing due to the difficult economic situation, OilPrice says. 

The instability is mainly driven by price volatility and geopolitical tension. This is particularly noticeable in Asia, where post-pandemic economic recovery is uneven. At the same time, according to OilPrice, the industry has been supported by the US government resuming approvals for liquified natural gas (LNG) export permits. The US share of global LNG exports has reached 30%, securing the country’s leading position amid growing competition with Qatar and Australia.

The situation is complicated by the cautious stance of buyers, who are waiting for clearer long-term signals from producers. New terminals in Germany and India may boost demand in the second half of the year, but GIIGNL doubts that it will grow significantly given the current market condition.