As we are well aware, LNG is one of the fastest growing segments of the energy industry – especially for countries that lack the traditional pipeline infrastructure to transport natural gas.
The demand for LNG has only increased in recent years, with the industry feeling the extra strain due to the conflict in the Middle East, and the closure of the Strait of Hormuz, a major shipping route, over the last five months. As a result of this pressure, many LNG markets outside of the Middle East are seeing a silver lining and have begun to flourish, particularly the US.
Looking at other regions beginning to expand their LNG infrastructure, in Africa, Mozambique has plans to benefit from a US$50 billion LNG pipeline. If able to overcome some of the hurdles it has faced, including financing issues, it will take advantage of the Rovuma Basin off its northern coastline in order to recover some of the estimated 130 – 140 trillion ft3 of natural gas that can be found there.1
In Europe, Bosnia and Herzegovina (BiH) has plans of its own for LNG. As countries across Europe try to take a step away from Russian gas, BiH had plans to construct the Southern Interconnect pipeline to diversify supply, and connect the country to Croatia’s Krk LNG terminal. However, the plan has faced major hurdles this year, including aligning with stringent EU energy law, and political contention from the Bosnian government. With the agreed support of Croatia, the project has taken some significant steps forward, but the road ahead is long, particularly when it comes to importing US LNG and potentially jeopardising access to EU funding for the project.2
Across the pond in North America, export capacity for LNG has the potential to more than double by 2029, according the U.S. Energy Information Administration.3 With this in mind, there have been some exciting developments across the continent in the first six months of 2026. In Canada, LNG Canada Phase 2 is expected to make a final investment decision this year. The project is aiming to expand its LNG facility and deliver low-carbon intensity Canadian energy to global markets, with the LNG Canada facility also recently celebrating one year of operations in June. Elsewhere in Canada, Woodfibre LNG’s proposed 2.1 million tpy export facility is now at 60% completion, with substantial completion expected by 2027.4
Over in the Asia Pacific region, the Woodside-led Browse offshore project that is currently under development could become Australia’s next largest LNG export hub, with a projected capacity of 11.4 million tpy.5 Alongside this, Scarborough LNG is supplying the expanded Pluto LNG facility. However, it is worth noting that LNG demand in Asia Pacific is predicted to fall by approximately 4.1% in 2026 (from 268 million t in 2025 to 257 million t in 2026), with this being the second consecutive year that there has been a decline.6 This is likely due to supply constraints and bottlenecks as a result of transit disruptions caused by the conflict in the Middle East – particularly with the closure of the Strait of Hormuz.
Looking forward into 2H26, despite geopolitical tensions, it is important to remain optimistic, with approximately 60% of the total new project supply for the year projected to ramp up during this period. It is clear to see that we are looking at a phase of recovery, but not a total market rebound. As the northern hemisphere nears autumn and ebbs towards the cooler months, this will hopefully help bolster the market improvements as Europe starts to restock reserves, despite the over-arching volatility.7
References
- WRIGHT, A., ‘Analysis: How Mozambique plans to benefit from $50bn LNG pipeline’, Gasworld, (24 July 2026), www.gasworld.com/story/how-mozambique-plans-to-benefit-from-50bn-lng-pipeline/2255276.article
- JOVANOVIC, T. and RANSOW, G., “NSIGHT: How Bosnia and Herzegovina’s plans to pipe in US LNG dent its EU hopes’, ICIS, (28 July 2026), www.icis.com/explore/resources/news/2026/07/28/11226217/insight-how-bosnia-and-herzegovina-s-plans-to-pipe-in-us-lng-dent-its-eu-hopes
- ‘North America’s LNG export capacity could more than double by 2029’, U.S. Energy Information Administration, (16 October 2025), www.eia.gov/todayinenergy/detail.php?id=66384
- ‘Canadian LNG industry: 2026 outlook’, Norton Rose Fulbirght, (February 2026), www.nortonrosefulbright.com/en/knowledge/publications/10bef30f/canadian-lng-industry-2026-outlook
- ‘Browse to NWS Project’, Woodside Energy,www.woodside.com/what-we-do/developments-and-exploration/browse
- GREGORY, S., ‘Asia Pacific LNG demand forecast to fall by 4.1% in 2026, Gasworld, (14 July 2026), www.gasworld.com/story/asia-pacific-lng-demand-forecast-to-fall-by-4-1-in-2026/2254368.article
- ‘LNG shipping in 2026: LNG shipping on a ‘road to recovery’, but 2026 marks just the beginning’, Drewry, (20 January 2026), www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/lng-shipping-in-2026-lng-shipping-on-a-road-to-recovery-but-2026-marks-just-the-beginning
