LONDON/SINGAPORE: Global liquefied natural gas (LNG) trade reached an all-time high in 2025, driven by robust exports from the United States and a sharp increase in European demand, despite weaker imports across much of Asia, according to a report released by the International Gas Union on Wednesday.
The IGU cautioned, however, that escalating tensions in the Middle East could disrupt LNG supplies and slow market growth in 2026.
“The conflict in the Gulf has damaged LNG infrastructure, clouded the outlook for the region’s expansion projects, and exposed Asian buyers to supply uncertainty and higher prices,” said Andrea Stegher, President of the IGU.
According to the report, global LNG trade increased by 6.3% to a record 436.98 million metric tonnes in 2025, marking the fastest annual growth since 2022.
Europe recorded the largest increase in LNG imports, with volumes rising by 26.1 million tonnes to 126.2 million tonnes as countries replenished gas inventories and compensated for reduced pipeline gas supplies from Russia.
The Asia-Pacific region remained the world’s largest LNG-importing market, receiving 168.7 million tonnes during the year. However, total imports into the region declined by 9.2 million tonnes, mainly due to lower demand in China and India.
China retained its position as the world’s largest LNG importer, purchasing 69.77 million tonnes, although imports fell by 8.9 million tonnes compared with the previous year. The decline was attributed to increased domestic gas production and higher pipeline gas imports from Russia.
The report also noted diverging market trends across Asia. While China reduced LNG purchases, lower domestic gas production in parts of Southeast Asia increased dependence on spot LNG cargoes.
Japan ranked as the second-largest LNG importer, importing 67.37 million tonnes, while South Korea increased its LNG purchases by 1.7 million tonnes to 48.67 million tonnes.
The IGU warned that persistently high LNG prices could constrain demand growth in emerging Asian economies, particularly across South and Southeast Asia.
Meanwhile, Chinese LNG re-exports surged 45.8% year-on-year to 0.67 million tonnes, reflecting changing regional trade dynamics.
On the supply side, the United States remained the world’s largest LNG exporter, shipping 110.74 million tonnes in 2025. Qatar ranked second with 81.51 million tonnes, followed closely by Australia, which exported 80.32 million tonnes.
The International Gas Union, which represents more than 130 member organisations accounting for over 90% of the global gas market, said geopolitical developments and evolving trade patterns will continue to shape the outlook for the LNG industry in the coming years.
By Reuters
