U.S.-Led LNG Wave Set to Reshape Global Gas Markets in 2026
A new IEA report says expanding LNG supply led by the United States is expected to drive stronger global natural gas demand growth in 2026, while easing market tightness and reshaping LNG trade flows.
(P&GJ) — Expanding LNG supply, led largely by new U.S. export capacity, is expected to fuel stronger global natural gas demand growth in 2026, according to the International Energy Agency’s Gas Market Report for Q1 2026.
The report said global LNG production is forecast to increase by more than 7% in 2026, marking the fastest pace of growth since 2019. North America is expected to account for most of the increase, with the United States, Canada and Mexico contributing more than 85% of additional LNG supply.
The IEA said the United States continued to dominate new LNG project development in 2025, with more than 80 billion cubic meters per year of liquefaction capacity reaching final investment decision — an all-time high for the U.S. LNG industry. Projects moving forward included Louisiana LNG, Corpus Christi Train 8 & 9, CP2 Phase 1, Rio Grande LNG Train 4 and Port Arthur Phase 2.
Global LNG production rose nearly 7% in 2025, with most of the growth occurring in the second half of the year. The report noted that Venture Global’s Plaquemines LNG facility in Louisiana accounted for more than 60% of the increase in LNG supply during the year and played a major role in easing market tightness.
Despite improving supply conditions later in the year, natural gas demand growth slowed significantly in 2025. The IEA estimated global gas consumption increased by less than 1%, citing weaker industrial activity and elevated LNG prices during the first half of the year.
The agency said Europe and North America accounted for most of the demand growth, while Asian demand remained subdued. China’s LNG imports fell 14% year over year as domestic gas production and pipeline imports from Russia increased.
The report also highlighted growing liquidity in global gas markets. Trading activity on Henry Hub rose 8% in 2025, while gas trade volumes in Europe increased an estimated 17%. The IEA said stronger market interconnectivity and greater demand volatility are driving more active LNG trading and hedging strategies worldwide.