Global LNG Market Remains ‘Fragile’ Despite Lower Prices

A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
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Global LNG Market Remains ‘Fragile’ Despite Lower Prices

A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. (Reuters)

The International Gas Union (IGU) said in a report on Wednesday that the global liquefied natural gas (LNG) market remains fragile following two years of volatility, despite new discoveries and lower prices.

Global LNG trade reached a record level of 401.42 million metric tons in 2023, growing by 2.1% or 8.4 million tons from the previous year, supported by high spot purchases due to gradual decline in prices.

However, the pace of growth was lower than the 5.6% seen in 2022, as limited supply remains the primary growth-limiting factor, IGU said in its World LNG Report.

LNG, widely seen as a transition fuel on the path to net-zero emissions, is playing a critical role to help countries, especially in Asia, to achieve their energy transition goals.

European Union nations have raced to replace Russian fuel following Moscow's invasion of Ukraine in 2022, and LNG imports have been instrumental in replacing a substantial share of Russian gas pipeline supplies.

The benchmark front-month contract of LNG was up by 0.50 euro at 35.10 euros per megawatt hour (MWh) by 0912 GMT on Wednesday while temperatures in north-west Europe are expected to peak on Thursday.

UK gas demand is expected to fall sharply due to the forecast of stronger wind speeds, with wind power generation expected to triple by Friday this week, while German wind power production is expected to rise gradually above the seasonal average by the end of this week, said LSEG gas analyst Tomasz Marcin Kowalski.

On the supply side, Norwegian exports to the continent are expected to increase from tomorrow due to high Norwegian field production and there will be a limit on export capacity through the Langeled pipeline to Britain until July 7.

“The global market's newfound equilibrium is still fragile and sensitive to uncertainties from supply and demand sides,” said IGU President Li Yalan.

The United States remained the world's top LNG exported in 2023, with total exports of 84.53 million tons, an increase of 8.9 million from the previous year.

Australia came in second place with exports totaling 79.56 million tons, followed by Qatar and Russia exporting 78.22 million and 31.36 million respectively.

Asia saw the biggest change in net imports, with an increase of 10.49 million tons, as lower prices spurred spot purchases. China was the world's top LNG importer with 71.21 million tons of imports.

Meanwhile, European imports remained steady, as a mild winter helped keep inventories at strong levels.

Europe's long-term purchases reached 46.4% and its spot purchases were 48.4%.



From Russia, Alkhorayef Says Saudi Aims to Lead in Future Tech

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
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From Russia, Alkhorayef Says Saudi Aims to Lead in Future Tech

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef (Ministry of Industry and Mineral Resources)

Saudi Arabia is leading a sweeping industrial transformation aimed at reshaping the national economy and securing a leading position in advanced sectors, the kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef said.

Speaking at the main session of the INNOPROM 2025 international industry fair in Yekaterinburg, Russia, Alkhorayef highlighted Saudi Arabia’s early adoption of future technologies and its efforts to boost production capabilities within global value chains.

He outlined that the National Industrial Strategy, launched in 2022, serves as the operational framework for the kingdom’s industrial vision. The strategy focuses on three integrated pillars targeting key industrial groups. The first pillar covers industries related to national security — including food, pharmaceuticals, water, and military sectors — which Saudi Arabia aims to localize through active partnerships.

Alkhorayef said the second pillar focuses on industries that leverage Saudi Arabia’s relative advantages, including abundant natural resources such as oil, gas, and minerals, as well as its strategic geographic location that positions the kingdom as a global logistics hub. Key sectors under this pillar include advanced petrochemicals, mining, and value-added manufacturing.

The third pillar targets future-oriented and emerging technologies. Saudi Arabia aims to strengthen its position in the early adoption of cutting-edge technologies through clear incentive policies.

These include support for research and development, applications of the Fourth Industrial Revolution, artificial intelligence, and 3D printing. Complementary measures such as the local content policy prioritize domestic products and bolster reliance on national capabilities, he added.

Alkhorayef also outlined recent developments in the kingdom’s mining sector, a key focus of Vision 2030. He said efforts have followed three main tracks, starting with expanded geological exploration that boosted the estimated value of Saudi mineral reserves from $1.3 trillion to $2.5 trillion. These reserves include strategic minerals such as phosphate and copper, with ongoing attention to social and environmental considerations in mining areas.

The second track involves strengthening international partnerships through the annual Riyadh International Mining Conference, which has evolved into a global platform addressing challenges related to securing critical raw materials for the energy transition.

The conference fosters coordination among governments, private sector players, and academic and research institutions to enhance the mining sector’s efficiency and sustainability. Alkhorayef expressed gratitude for the Russian government’s contributions to the event.

Highlighting strong Saudi-Russian ties, he said there are promising opportunities to deepen cooperation, particularly given the alignment between Saudi Vision 2030 and Russia’s 2030 national development goals in economic growth, digital transformation, and technological leadership.

Alkhorayef noted that the launch of the Saudi-Russian Joint Committee in 2002 and the opening of the Saudi commercial attaché office in Moscow in 2022 marked key milestones in advancing the partnership. He pointed to significant growth in bilateral trade, which surged from $491 million in 2016 to over $3.28 billion in 2024.