Global gas demand, supply and LNG trade reached record highs in 2025; abundant supply and elevated trade flows ease near-term tightness in European and Asian gas markets.
What moved
Global gas demand, supply and LNG trade reached record highs in 2025; abundant supply and elevated trade flows ease near-term tightness in European and Asian gas markets.
The market transmission
Record LNG trade volumes and expanded supply capacity reduce the immediate risk premium in natural gas prices that persisted through 2024. However, the extent of price impact depends on whether this expansion is structural or cyclical, and on the distribution of that supply across regional hubs. European TTF and Asian LNG prices are the primary transmission points; neither typically reprices sharply on supply abundance alone without a demand collapse or inventory build.
What would change this
Record supply is not the same as surplus at profitable levels, and abundant global supply does not automatically translate into lower prices at every regional hub. Logistical constraints, pipeline capacity, and destination mix matter as much as aggregate volumes. If demand growth kept pace with supply growth, prices may have remained flat or risen despite the record flows.