The Looming LNG Glut and What It Means for Global Energy Prices

By Felicity Bradstock – OilPrice.com

As several countries invest in expanding their liquid natural gas (LNG) production and export capacity, and significant quantities of the gas are expected to come online in 2026 after a record 2025, supply could soon outpace demand. This begs the question: just how much LNG is needed to “fill the gap” as the world develops its renewable energy capacity? 

Last year was a record year for LNG trade, as exports exceeded the quantities predicted in several industry forecasts. The expansion of the world’s LNG trade has been led by the United States, which exported over 100 million metric tonnes of LNG in 2025. This was driven by several new plants coming online across the country. The U.S. exported an estimated 111 million metric tonnes (mmt) of LNG in 2025, 23 mmt more than the previous year and far higher than Qatar’s 20 mmt, the world’s second-largest exporter, according to the data analysis firm LSEG.