LONDON: Global trade in liquefied natural gas (LNG) reached a record high in 2025, driven by robust US exports and a sharp increase in European demand, although escalating geopolitical tensions in the Middle East threaten to slow growth this year, according to the International Gas Union (IGU).
The IGU said global LNG trade rose 6.3 per cent to 436.98 million tonnes last year, marking the fastest annual growth since 2022 as Europe increased purchases to replenish inventories and replace declining Russian gas supplies.
"The conflict in the Gulf has damaged LNG infrastructure, cast a shadow over the prospects for expansion projects in the region, and created uncertainty for Asian buyers regarding flows and price increases," IGU President Andrea Steger said in the report.
Europe recorded the largest increase in imports, with LNG purchases rising by 26.1 million tonnes to 126.2 million tonnes during the year.
The Asia-Pacific region remained the world's largest LNG-importing market, receiving 168.7 million tonnes despite an overall decline of 9.2 million tonnes. The fall was largely attributed to weaker demand in China and India.
China retained its position as the world's largest LNG importer, taking in 69.77 million tonnes, although imports fell by 8.9 million tonnes from the previous year as stronger domestic gas production and increased pipeline supplies from Russia reduced reliance on seaborne LNG.
Japan ranked as the second-largest importer with 67.37 million tonnes, while South Korea increased imports by 1.7 million tonnes to 48.67 million tonnes.
The report highlighted diverging trends across Asia, noting that while China's imports weakened, declining domestic production in parts of Southeast Asia increased dependence on spot LNG cargoes.
The IGU warned that persistently high LNG prices could curb demand growth in emerging Asian economies, particularly across South and Southeast Asia, where affordability remains a key concern.
On the supply side, the United States retained its position as the world's largest LNG exporter, shipping 110.74 million tonnes in 2025. Qatar ranked second with exports of 81.51 million tonnes, followed closely by Australia with 80.32 million tonnes.
The International Gas Union, which represents more than 130 organisations across over 90 per cent of the global gas market, said geopolitical developments and supply disruptions will remain key factors shaping LNG trade in the coming months. — Reuters
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