The outlook for natural gas is shaped by two opposing forces: increasing demand in emerging economies as they rapidly grow and industrialise, offset by a shift away from natural gas as the world increasingly electrifies and decarbonizes. The relative strength of these two forces – and hence the outlook for natural gas – depends on the pace of the energy transition.
Trade in LNG increases rapidly through the rest of this decade, but prospects for LNG trade post 2030 are dependent on the pace of the energy transition.
The outlooks for natural gas in different regions and countries depend on a range of factors. In the EU, imports of natural gas continue to be impacted by geopolitical factors. And in the US, the increase in US gas production over the first half of the outlook is driven by the expansion of LNG exports.