Global Liquefied Natural Gas (LNG) Market Poised for Growth, Wells Fargo Analysts Say
The LNG market is set to expand significantly by the end of the decade, driven by new projects coming online. Wells Fargo analysts predict annual LNG supply growth to accelerate to 10% in 2026 and exceed 8% in 2028 and 2029. This growth is attributed to major projects in the United States, Qatar, and Australia. The U.S. is expected to add 66 million tons per annum of new LNG capacity by 2030, solidifying its position as a top LNG exporter. The surge in supply may lead to downward pressure on prices, especially in the spot market, as more production capacity comes online. This could impact global gas markets and pricing dynamics, with potential implications for consumers and producers worldwide. While the outlook for LNG supply growth is positive, there are risks that could disrupt this trajectory, such as a deceleration of U.S. production or geopolitical factors affecting infrastructure development and supply-demand balance.