Global demand for natural gas is expected to grow at a faster pace in 2026, supported by a significant expansion in liquefied natural gas (LNG) supply, according to the International Energy Agency’s Gas Market Report Q1-2026. The agency estimates demand growth will approach 2% in 2026, up from less than 1% in 2025, as supply constraints ease and prices stabilize.

The IEA noted that gas consumption slowed sharply in 2025 due to tight supply conditions during the first half of the year, elevated spot prices, and weaker industrial activity, particularly across Asia. Market conditions began to improve from mid-2025 as LNG production accelerated, helping reduce price pressures in both European and Asian markets.

Global LNG supply increased by nearly 7% in 2025, with approximately three-quarters of that growth occurring in the second half of the year. New export capacity in North America accounted for the majority of the increase, pushing global LNG supply into double-digit growth during the latter part of 2025. The expanding availability of destination-flexible LNG also strengthened price linkages between regional markets, with correlations reaching historically high levels.

Investment activity in LNG infrastructure remained strong. More than 90 billion cubic metres (bcm) per year of LNG liquefaction capacity reached final investment decision in 2025, making it the second-highest annual total on record. The United States led global approvals, accounting for over 80 bcm of new annual capacity, reinforcing its position as the world’s largest LNG supplier. Contracting activity also reached record levels, signaling continued long-term demand commitments.

Looking ahead, the IEA expects global LNG supply growth to exceed 7% in 2026—the fastest pace since 2019—with North America responsible for most of the projected 40 bcm increase. Rising availability is expected to support stronger gas demand growth, particularly in China and other emerging Asian markets, though the agency cautioned that geopolitical risks and weather-related volatility remain key uncertainties.

References

International Energy Agency – Growth in global demand for natural gas is set to accelerate in 2026 as LNG wave spreads through markets https://www.iea.org/news/growth-in-global-demand-for-natural-gas-is-set-to-accelerate-in-2026-as-lng-wave-spreads-through-markets

International Energy Agency – Gas Market Report, Q1-2026
https://www.iea.org/reports/gas-market-report-q1-2026