Home / Business and Economy / Global Gas Glut Meets US Supply Squeeze
Global Gas Glut Meets US Supply Squeeze
14 Jul
Summary
- Global LNG oversupply to exceed 100 million tons by 2031.
- US gas supply faces a deficit by 2028 due to export demand.
- A surge in LNG exports is rapidly increasing US gas demand.
By 2031, the world is poised to face an oversupply of liquefied natural gas exceeding 100 million tons, according to recent BloombergNEF reports. This surplus is anticipated to lead to falling prices, making LNG more accessible for lower-income countries, especially in Asia.
Simultaneously, the United States is projected to experience a domestic natural gas deficit by 2028. This shift is driven by the rapid growth in demand from LNG export terminals, which are becoming the primary driver for US gas producers. This situation marks a significant reversal from recent years when the US supplied abundant gas to the global market. The reports suggest a potential return to the previous dynamic in the 2030s, contingent on substantial increases in US gas drilling and accelerated LNG adoption across Asia. This indicates a future where the global gas market balance could be restored if production and demand trends align.
