LNG Market Prepares for a Period of Multi Year Oversupply

Starting in 2026, the global liquefied natural gas market may enter a multi year period of oversupply. According to analysts, this could push LNG prices down to their lowest levels since the 2022 energy crisis.

Most of the new supply in 2026 will come from the Golden Pass project in Texas, developed by ExxonMobil and QatarEnergy. The International Energy Agency expects 2026 to bring the largest increase in LNG production since 2019, following several years of tight supply.

US LNG production continues to grow. Output rose 19 percent year on year in the first half of the year. Qatar’s export project is also expected to launch in 2026, marking the country’s largest capacity expansion since 1997.