Global LNG markets heading towards supply accumulation

New Delhi: The global liquified natural gas (LNG) markets are now heading towards significant supply glut, which is set to benefit India as significant capacity addition amid expectation of modest demand growth in the global consumption will keep the LNG prices under check, a report said on Wednesday.

Consumption in India is expected to grow by 6-8 per cent YoY in FY2025, supported by softer LNG prices and an uptick in the domestic gas production, according to the report by credit rating ICRA. Globally, about 193 million metric tonne (MMT) of the LNG production and liquefaction capacity is slated to be added over the course of the next four years.

The report highlighted that after two volatile years in terms of natural gas supplies and pricing, the global LNG markets are now heading towards significant supply glut with large capacity additions planned from CY2024 to CY2028.