At time of writing, western Europe has just experienced a heatwave where temperatures reached unprecedented highs. According the Met Office, the UK provisionally set a new daily maximum air temperature for June, reporting 36.1°C in Hampshire towards the end of the month, exceeding the previous record of 35.6°C, which has been unbroken since 1976.1 France also recorded its hottest day two days in a row, while the southern Spanish town of Andújar recorded a sweltering 45.1°C.2 Besides intense discomfort and the risks of heat-related illness, the heatwaves in Europe are placing a huge strain on energy grids. Three nuclear plants in France were taken offline due to the soaring temperatures, and over 100 000 people were left without power in northwestern France as the country’s infrastructure struggled to cope, while over in Milan, Italy, increased electricity demand from air conditioning caused an overnight blackout.3
Although changes to the climate are ramping up temperatures across the globe, Europe is the fastest warming continent, heating up twice as fast as the global average, according to the Copernicus climate service.2 This trend raises the likelihood of summer heatwaves, increases the risk of intense wildfires, and places additional pressure on Europe’s water supplies. Another commodity that faces greater demand during periods of increased summer temperatures is natural gas. While increased LNG demand is typically associated with winter heating, ever-increasing demand for power during hot summers is contributing to the rising demand for LNG across Europe. In fact, analysts at Wood Mackenzie see Europe meeting peak demand in 2036, with northwest Europe set to remain the cornerstone of European LNG imports through 2060, even as the gas demand declines due to the energy transition.
In June, I was fortunate enough to attend the fourth annual Gas, LNG and the Future of Energy Conference held by Wood Mackenzie in London. The two-day event entered into discussions about a range of pressing topics for the LNG industry, including talks about how to navigate volatility and security of supply in a dynamic LNG landscape, how a shifting geopolitical landscape continues to influence the industry, the future of gas and LNG in Europe, and the realities of net-zero and decarbonisation pressures on LNG markets.
A theme that prevailed throughout each conversation was resiliency. A key insight from Massimo Di Odoardo, Vice President of Gas and LNG Research at Wood Mackenzie, emphasised that there is no consensus on how the LNG market will evolve going forwards. The Middle East conflict has the potential to reshape long-term energy demand and trade dynamics, especially in an extended disruption scenario where a resolution to conflict is not reached soon. In light of this, global trade flows are moving away from being efficiency-led and are becoming far more resilience-led. Countries are building diversity into their energy portfolios and are making attempts to limit exposure to one single source of LNG. During a keynote address, an industry expert explained that countries are becoming increasingly willing to pay for diversification, paying more for their LNG to reduce the dependency and risk associated with its supply. With rising gas demand and the urges to diversify, Canada entered discussions as an increasingly reliable supplier while developments in regions like East Africa and countries such as Argentina and Venezuela remain a possibility for the future.
This renewed focus on resiliency confirms that gas demand is here to stay. In a spotlight on LNG shipping, experts noted that more than 350 newbuild LNG carriers will be needed by 2040 as more final investment decisions (FIDs) are reached. Though newbuild ordering is struggling to keep pace with these new supply FIDs, analysts predict that investment in shipping will continue despite geopolitical challenges because, crucially, LNG is only flexible if there are enough ships to transport it.
This issue of LNG Industry builds upon these crucial discussions with a regional report on the US, and articles exploring LNG fuel solutions and alternative fuels, FSRUs, digitalisation, regasification technology, and more.
References
- ‘UK June maximum temperature record provisionally broken’, Met Office, (24 June 2026), www.metoffice.gov.uk/about-us/news-and-media/media-centre/weather-and-climate-news/2026/uk-june-maximum-temperature-record-provisionally-broken
- KIRBY, P., GOZZI, L., and BELL, B., ‘Paris restricts alcohol consumption and sales as Europe's heatwave shifts east’, BBC News, (25 June 2026), www.bbc.co.uk/news/articles/cwy0pdq89zno
- ‘Over 100,000 people left without power in France, as Europe faces extreme heat’, ITV News, (24 June 2026), www.itv.com/news/2026-06-24/over-100000-people-left-without-power-in-france-heatwave
