LNG Exports Surging in U.S., Globally

A wave of new liquefied natural gas (LNG) production capacity will result in major changes to global gas markets, a new analysis indicates.

The Gas 2025 analysis by the International Energy Agency finds that about 300 billion cubic meters of new export capacity will be added across the world by 2030, with most of the expansion occurring in the U.S. and Qatar.

“This wave of new LNG production capacity is set to profoundly transform global gas market dynamics,” the report states. “The scaling up of LN supply will play a key role in enhancing supply security and improving the affordability of natural gas – including in price-sensitive emerging import markets.”

The report echoes a recent analysis by the U.S. Energy Information Administration, which reports that LNG exporters in this country have announced plans to more than double liquefaction capacity between 2025 and 2029, adding 13.9 billion cubic feet (bcf) per day. If projects under construction in Canada and Mexico come online, LNG export capacity will increase from 11.4 bcf in 2024 to 28.7 bcf in 2029. North American expansion will account for more than 50% of global additions through 2029.

The U.S. is currently the world’s largest LNG exporter, and the amount sent overseas will continue to grow, the IEA report indicates. LNG is gas that is condensed into a liquid form by lowering its temperature to minus 260°F, a process called liquefaction, making it easier and more economical to store and transport, using special refrigerated tanks or specially built ships. A number of new liquefaction terminals are being built, mostly along the Gulf Coast, but also in Canada and Mexico.

Natural gas is piped from the gas-producing regions of the U.S., including the Appalachian basin, to these liquefaction facilities, where it is processed. The IEA report notes that the build out of additional pipelines, due to long permitting timelines, could present a challenge.

Global demand for LNG has slowed in 2025, due to higher prices and tight supply, the IEA indicated. Global gas demand growth is expected to drop from 2.8% in 2024 to below 1% in 2025. Under current gas pricing projections, the coming expansion could result in a supply surplus. However, if LNG prices decline between 2027 and 2030, this could spur additional gas demand, particularly in Asian nations.

The IEA expects global demand to increase by about 9% in 2030 under its base case, which reflects current policies and projections. However, if prices fall, demand could increase by more than 10%. The Asia-Pacific region is expected to account for about half of the demand increase.

U.S. gas producers, as well as those in other gas-producing countries, are taking steps to meet this increasing demand. The IEA reported that final investment decisions on LNG projects have risen sharply this year, with about a 50% increase in the global LNG supply anticipated by 2030.