Gas
Gulf LNG recovery to ease global gas prices from 2027
GlobalData reports that liquefied natural gas exports from the Gulf will recover starting in 2027, helping to stabilise international markets following earlier shipping disruptions.
Key points
- Middle Eastern gas production will drop by 98 billion cubic metres in 2026 due to infrastructure disruptions.
- A projected supply surplus is expected to peak at approximately 200 billion cubic metres in 2029.
- Global gas demand is projected to grow at a compound annual rate of 1.8 percent through 2035.
Market outlook and recovery
International gas markets should see normalisation as liquefied natural gas shipments from the Gulf region rebound beginning in 2027, according to market intelligence platform GlobalData. TradingView reported that recent shipping disruptions in the Strait of Hormuz restricted access to a significant portion of international supplies and harmed liquefaction facilities in Qatar. Paul Hasselbrinck, oil and gas lead analyst at GlobalData, described the incident as an infrastructure challenge rather than an underlying resource scarcity.
European and Asian price levels climbed following the route closures and capacity damage, despite an overall rise in worldwide production during 2026. Data from the firm's market outlook indicate that Middle Eastern output reductions will restrict global supply growth to 14.9 billion cubic metres this year, falling short of projected demand increases and leaving substantial demand unserved.
Infrastructure and future supply
The rebound from these disruptions is anticipated to follow a U-shaped trajectory rather than a sharp bounce. As reported by TradingView, scheduled additions of liquefaction capacity in the United States and Qatar are expected to create a supply surplus peaking near 200 billion cubic metres by 2029 before demand absorbs the excess.
Hasselbrinck noted that future market conditions will depend heavily on upstream investments and export infrastructure development. While several frontier markets face a lack of sanctioned transport routes for planned gas supplies, the United States requires increased upstream production to match its approved export capacities.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
