LNG exporters weigh 2025 gains and 2026 uncertainties

After record 2025 production and a 25% rise in European LNG purchases, exporters face concern as imports fell in key Asian markets and benchmark gas prices remain near three-year highs.

The LNG sector posted record production and exports in 2025, and many sellers benefited from higher revenues. European purchases rose sharply last year, while several large Asian buyers reduced imports. These mixed demand patterns and elevated gas prices are central to exporter outlooks for 2026. Key points: - 2025 saw record LNG production and exports, according to the Reuters column. - European purchases rose about 25% in 2025; European gas-fired electricity output from January to November was 1,009 TWh, up 3.4% year-on-year, per think tank Ember. - European imports of U.S. LNG jumped close to 60% from 2024 levels, data from commodities firm Kpler shows. - Asia accounted for around 64% of global LNG imports; shipments to Asian buyers were just over 613 million cubic meters in 2025, nearly 5% below 2024, with China down about 15%, Japan down about 2%, and India down about 7%. - Benchmark natural gas prices are near three-year highs and rising in the United States, while faster renewables growth in China and recovering nuclear generation in Japan are weighing on gas-fired generation. Summary: Strong European buying in 2025 boosted exporter revenues, but weaker imports across key Asian markets and higher prices create uncertainty for demand growth in 2026. Exporters are likely to focus on established markets while watching whether Europe sustains its higher purchases and whether Asian demand, especially in China and India, recovers. Undetermined at this time.