Global liquefied natural gas (LNG) trade climbed to a record high in 2025, led by strong export growth from the United States and higher European demand, even as imports declined across major Asian markets, according to the International Gas Union (IGU).
The IGU's latest report said global LNG trade rose 6.3 per cent year-on-year to 436.98 million metric tonnes in 2025, registering the fastest annual growth since 2022.
Europe recorded the largest increase in LNG imports during the year, with volumes rising by 26.1 million tonnes to 126.2 million tonnes. The report attributed the increase to efforts to replenish gas inventories and replace lower pipeline gas supplies from Russia.
Although the Asia-Pacific region remained the world's largest LNG importing market with 168.7 million tonnes, total imports into the region fell by 9.2 million tonnes, mainly due to lower demand from China and India.
China continued to be the world's largest LNG importer at 69.77 million tonnes, despite a year-on-year decline of 8.9 million tonnes. The report said stronger domestic gas production and higher pipeline imports from Russia reduced the country's dependence on LNG imports.
Japan ranked as the second-largest importer with 67.37 million tonnes, while South Korea increased its LNG purchases by 1.7 million tonnes to 48.67 million tonnes.
Asia Faces Demand And Price Pressures
The report highlighted differing trends across Asia, noting that while China's LNG imports weakened, lower domestic gas production in parts of Southeast Asia increased reliance on spot LNG purchases.
The IGU also warned that prolonged periods of elevated LNG prices could slow demand growth across emerging economies in South and Southeast Asia, where affordability remains a key concern.
Chinese LNG re-exports increased 45.8 per cent during the year to 0.67 million tonnes, reflecting changing regional trade flows.
Middle East Conflict Clouds Outlook
On the supply side, the United States retained its position as the world's largest LNG exporter, shipping 110.74 million tonnes in 2025. Qatar exported 81.51 million tonnes, followed by Australia at 80.32 million tonnes.
However, the IGU cautioned that geopolitical risks could weigh on the market in the coming year.
"The conflict in the Gulf has damaged LNG infrastructure, clouded the outlook for the region's expansion projects, and exposed Asian buyers to flow uncertainty and higher prices," IGU President Andrea Stegher said in the report.
According to the IGU, these disruptions could result in a contraction in global LNG trade in 2026 if supply uncertainties persist. |
