Money and business

An expected drop in prices.. LNG production will recover in 2026


Analysts expect global production to Liquefied natural gas will have a big jump this year, which will ease the restrictions that the world has witnessed since the Ukraine war in 2022, and reduce prices, and boost demand from China and India, the largest global importers.

Analysts indicated that the year 2026 represents the beginning of a large wave of supply that is expected to continue until 2029, which will lead to lower prices that may push more demand from emerging economies.

The company reported "Kepler" That the year 2026 will be a transitional year for the liquefied natural gas market, as the Energyfrom scarcity to abundance, with sufficient supplies even as winter demand and storage needs emerge, particularly in Europe.

Estimates are expected from "S&P Global Energy"and"Kepler"and"Rystad Energy"A new production capacity of no less than 35 million metric tons will enter into operation this year, the majority of which will come from the United States and Qatar, and this will raise global LNG supplies by up to 10% on an annual basis.

According to estimates, the additional supply will put pressure on global prices, as analysts expect "Rabobank" and"Rystad" and"Kepler" The average Asian LNG prices are between $9.50 and $9.90 per million thermal units in 2026, down from an average of $12.45 in 2025.

It expects "Kepler" Europe’s imports of liquefied natural gas will rise by 22 million tons in 2026, due to higher storage needs after a decline in end-of-winter stocks and higher domestic gas consumption.

Related Articles

Back to top button