Liquefied Natural Gas (LNG) Market Size, Share & Industry Analysis, By Type (LNG Liquefaction and LNG Regasification), By Application (Power Generation, Industrial, Transportation, Residential, and Others), and Regional Forecast, 2025-2032

The global liquefied natural gas (LNG) market size was valued at USD 167.06 billion in 2024. It is projected to be worth USD 171.69 billion in 2025 and reach USD 227.28 billion by 2032, exhibiting a CAGR of 4.09% during the forecast period of 2025-2032. North America accounts for the largest market share owing to the robust LNG exports. Furthermore, factors such as development of LNG export facilities and increasing demand for LNG in importing countries will contribute to market growth.

The Liquefied Natural Gas (LNG) market signifies the global trade and infrastructure network involved in the process of cooling natural gas to a liquid state for transportation and storage, and then converting it back to its gaseous form for consumption. This market enables the movement of natural gas to areas not reachable by pipelines, facilitating global energy distribution.

The liquefied natural gas (LNG) market is expected to witness significant growth owing to factors such as increasing demand for cleaner energy sources, growing economic growth, especially in Asia Pacific, and increased use of LNG application in industries. In addition, there is a rising demand for electricity, particularly from power generation using natural gas as a lower-carbon alternative to coal.

• According to the International Energy Agency, India’s natural gas demand is expected to increase by 60% by 2030 owing to the rapid growth in the country’s energy landscape.

Furthermore, the growing applications of LNG as a transportation fuel and the rise of LNG bunkering in the maritime industry also contributes to market expansion.

Qatar Energy LNG is a prominent player in the global LNG market, holding the title of the world's largest LNG company. They produce and supply a significant volume of LNG, with a total production capacity of 77 million metric tons per annum (MTPA). Their dominance is rooted in access to the North Field, the world's largest non-associated gas field, which offers natural gas to their LNG trains.

MARKET DYNAMICS

MARKET DRIVERS

Emissions Reductions in Heavy Industry and Transport are Driving Market Growth

The shift toward natural gas-based vehicles is driving the market growth. This transition is due to the awareness regarding pollution caused by diesel and gasoline vehicles. According to the European Commission’s impact study accompanying the CO₂ standards proposal for heavy-duty vehicles, LNG engines could have ~20 % lower TTW CO₂ emissions as compared to diesel vehicles. The shift to LNG trucks would also have an optimistic effect on air pollutant emissions. In addition, due to its molecular structure, methane has a less carbon content than diesel and produces less CO₂ per unit of energy.

Furthermore, LNG is gaining prominence as a cleaner alternative fuel for heavy marine vessels, offering significant reductions in greenhouse gas emissions compared to traditional fuels such as HFO. While LNG is a transitional fuel, its adoption is growing due to its immediate environmental benefits and potential for future advancements in alternative fuels.

For instance, in June 2024, Mitsubishi Shipbuilding launched an LNG-fuelled RoRo vessel in Japan, aligning with the carbon reduction objective in the marine industry.

In December 2024, Adani Ports and Special Economic Zone (APSEZ) announced the docking of the first LNG-powered container marine vessel, which reflects the inclination of marine operators toward low-carbon fuels, contributing to the global transition to sustainable marine fuels and practices.

LNG Infrastructure Development to Drive Market Growth

The expansion of Liquefied Natural Gas (LNG) infrastructure is a significant driver of the LNG market, facilitating global trade and meeting increasing energy demands. Investments in liquefaction facilities, regasification terminals, storage, and transportation networks enhance supply chain reliability and accessibility, making LNG more attractive for diverse applications such as power generation and industrial use.

In May 2025, Deutsche Energy Terminal GmbH announced the initiation of LNG operations at Wilhelmshaven 2 LNG terminal in Germany. This terminal is equipped with LNG regasification capacity up to 4.6 billion cubic meters (bcm) of LNG per year by 2027. Such large-scale developments are expected to fuel the growth of the LNG market, especially in regions with high energy demand in the near future.

MARKET RESTRAINTS

Price Volatility and Supply Imbalances to Restrain Market Demand

The Liquefied Natural Gas (LNG) market growth is restrained from both price volatility and supply imbalances. Price volatility is driven by shipping costs, geopolitical events, and supply-demand discrepancies, making LNG prices vulnerable to fluctuations. In recent times, geopolitical turmoil has become the major reason for volatility in the supply and prices. For instance, according to World Bank commodities price data, the natural gas Europe index price witnessed a significant decline of 67.50% in 2023 from 2022 and 16.40% in 2024. Uncertain price fluctuations are expected to restrain market growth globally in the near future.

Furthermore, geopolitical events cause changes in shipping routes as maritime security becomes the major factor in geopolitical problems. Major recent geopolitical events include the Russia-Ukraine and the Iran-Israel War. Most of the energy and world trade takes place from the Strait of Hormuz, which is near Iran, and the conflict in the region could create problems for the countries importing energy through that route.

MARKET OPPORTUNITIES

Economic Growth in Asia Pacific is Expected to Lead Market Growth

The LNG market presents significant opportunities driven by rising demand in emerging economies and expanding applications beyond traditional sectors. Economic growth in Asia Pacific, particularly, is fueling demand for LNG as a cleaner energy source for power generation, industrial processes, and transportation.

As global energy demand increases, particularly in emerging economies, LNG ensures energy security while aligning with global decarbonization targets. LNG is increasingly being adopted as a cleaner alternative to coal and oil, emitting up to 40% less emissions than coal, nearly zero sulfur and particulate matter.

According to the Institute for Energy Economics and Financial Analysis, global LNG supply is expected to increase to 666.5 MTPA by 2028, which surpasses International Energy Agency (IEA) demand scenarios through 2050.

China, India, and Southeast Asia, are increasing LNG infrastructure to meet electricity demands for growing urban populations and industrial sectors. For instance, in May 2025, THINK Gas announced the expansion of its LNG network with the launch of 6 new dispensing stations to support India’s green transition.

MARKET CHALLENGES

Potential Geopolitical Conflicts to Create Challenges for Market Players

Geopolitical risks significantly impact the LNG market, potentially disrupting supply, increasing price volatility, and affecting investment decisions. These risks include regional conflicts, trade disputes, and political instability, which can disrupt supply chains, damage infrastructure, and alter trade patterns.

For instance, the Israel-Hamas war and the Russia-Ukraine conflict have led to regional instability and disruption of LNG flows and infrastructure. In June 2025, the closure of the Leviathan gas field due to the Israel-Hamas conflict impacted pipeline flows to Egypt. Moreover, Disruptions or blockades at critical maritime areas, such as the Strait of Hormuz or the Red Sea, can impact LNG tanker routes, increasing shipping costs and potentially delaying deliveries, which is expected to create numerous challenges for the market players in the near future.

LIQUEFIED NATURAL GAS (LNG) MARKET TRENDS

Growing Demand for Floating LNG Infrastructure is expected to Fuel Market Growth

The demand for Floating LNG (FLNG) infrastructure is growing rapidly, driven by rising global LNG demand, especially in regions with limited onshore infrastructure and the need for flexible, cost-effective solutions. FLNG systems, such as Floating Storage and Regasification Units (FSRUs) and floating liquefaction facilities, offer deployment speed, cost, and adaptability advantages. This growth is projected to rise, particularly in Asia, Europe, and Latin America, as countries seek to expand LNG infrastructure.

• In May 2025, Hoegh Evi signed a charter agreement with EGAS to deploy a floating storage and regasification unit at the Port of Sumed, Egypt, by 2026 to boost Egypt's LNG import capacity.

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IMPACT OF TARIFFS

Tariffs implemented by the U.S. government, have a multi-faceted impact on the global LNG industry, primarily through effect on global trade and economic activity. Some tariffs directly affect LNG trade; for instance, due to the U.S.’s tariff on the goods coming to the U.S. from China as a retaliatory action, China imposed a 15% tariff on U.S. LNG imports to China. In February 2025, the overall impact is more indirect, affecting global demand and investment decisions. The tariffs on the products manufactured by China would negatively impact the industrial activity in China, leading to less energy demand. This would be impacting the market. Furthermore, tariffs increase infrastructure costs, particularly in the U.S., due to higher prices for steel and other materials used in LNG terminal construction. The uncertain tariff rates can delay or hinder the final investment decisions for new LNG projects, which are crucial for increasing LNG supply.

SEGMENTATION ANALYSIS

By Type

Increasing LNG Trade is Anticipated to Propel the Growth of the Infrastructure Segment

Based on type, the market is segmented into LNG liquefaction and LNG regasification.

LNG liquefaction facilities currently dominate the market with a larger share due to increased global demand and the ability to easily transport and store natural gas in liquid form. The segment is experiencing significant growth globally due to the increasing demand for cleaner energy and the need to transport natural gas to regions lacking pipeline access. This involves the construction of facilities that cool natural gas to a liquid state, enabling efficient storage and transportation via specialized ships. The development of LNG infrastructure is crucial for enabling the global LNG trade and meeting the energy needs of various countries.

Regasification facilities are also growing, primarily driven by rising LNG imports and the need to diversify energy sources.

• In July 2024, DESFA launched the first regional LNG storage and gasification station catering to Central and Western Macedonia in Greece. Developing robust LNG infrastructure in smaller countries will propel market growth over the forecast period.

Moreover, regasification facilities are expected to have a significant growth rate owing to the increased demand for cleaner energy, geopolitical factors, and technological advancements, which is supported by strong LNG demand in the Asia Pacific region, where China and India are projected to consume significantly more natural gas than they can produce domestically, leading to greater reliance on LNG imports and the need for more regasification infrastructure in future.

By Application

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Rising LNG Demand in the Industrial Processes to Aid Market Growth 

Based on application, the market is broadly categorized into power generation, industrial, transportation, residential, and others.

The industrial segment is expected to have the largest market share over the forecast period. Industrial LNG demand is surging due to its versatility and cleaner burning properties compared to traditional fossil fuels. It is used in various sectors for heating, drying, and powering in food processing, manufacturing, and steel production. Additionally, LNG serves as a raw material for fertilizers and plastics, and it is increasingly adopted in transportation as a cleaner fuel for trucks and ships.

• In April 2024, GreenLine Mobility Solutions Ltd launched an LNG truck fleet for logistics operations for Bekaert’s plant in Maharashtra, India.

Furthermore, the transportation segment is expected to grow significantly, driven by the need for efficient and long-range fuel options, particularly for long-haul vehicles such as trucks and ships. LNG, a compressed form of natural gas, offers a higher energy density per volume than natural gas in its gaseous form, allowing for greater fuel storage capacity and longer driving ranges. This makes it a compelling alternative for heavy-duty transportation, where fuel efficiency and range are critical.

LIQUEFIED NATURAL GAS (LNG) MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America 

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Increasing LNG Export Drives Market Growth North America

North America is a major global LNG market driven by significant natural gas reserves, particularly in the U.S. and Canada. It encompasses the entire LNG value chain, from production and liquefaction to export and distribution, with major companies such as Cheniere Energy and Dominion Energy playing key roles.

U.S.

Rising LNG production to Propel Market Growth in the Country

The U.S. has become a leading liquefied natural gas (LNG) exporter, driven by abundant domestic resources and expanding export infrastructure. LNG exports are vital for meeting global energy demand, particularly in Europe, and have become a key factor in the global energy transition. The U.S. LNG industry is expected to continue expanding, driven by international demand and the development of new export facilities.

• In June 2025, TotalEnergies announced an agreement with NextDecade to procure 1.5 Mtpa of LNG for 20 years for Train 4 at the Rio Grande LNG facility, located in Texas, U.S.

Europe 

Increasing LNG Imports in the Region to Boost Market Growth

The European LNG market is expected to grow moderately due to fluctuating demand and shift toward more sustainable energy sources. However, LNG imports have been impacted by reduced gas demand due to renewable energy adoption and lower overall gas consumption. They are also expected to increase in the coming years, particularly with the commissioning of new LNG projects in North America and Qatar in the near future.

• In March 2025, Securing Energy for Europe (SEFE) signed an agreement with Delfin Midstream to supply LNG from the coast of Cameron, Louisiana, on the U.S. Gulf Coast. Increasing LNG trade in the region is expected to foster infrastructural development in near future.

Asia Pacific

Significant Shift toward Adoption of Natural Gas Drives Market Growth

The Asia Pacific LNG market is expected to grow rapidly, particularly in China, Southeast Asia, and South Asia, due to increased urbanization and the need for cleaner energy. This growth will be fueled by a shift toward natural gas as a transition fuel and a need to support energy security as China, Japan, and South Korea expand their energy portfolios. The region is also expected to remain as a largest destination for LNG imports, with a significant portion of global LNG trade attributed to Asia Pacific.

• In February 2025, TotalEnergies announced plans to supply Gujarat State Petroleum Corporation Limited (GSPC) under a sale and purchase agreement (SPA) to supply GSPC with 400,000 tons of LNG.

China

Rising Demand of Natural Gas for Power Generation and Industrial Propels Market Growth across the Country

The LNG market in China is expected to have a significant share of the global LNG market, driven by rising demand for natural gas for power generation and industrial applications and a push to reduce coal reliance and improve air quality. While domestic gas production and pipeline imports also contribute to China's gas demand growth and overall energy supply, LNG imports remain a major factor in meeting the nation's growing energy needs.

• According to the U.S. Energy Information Administration, China is the world's largest importer of LNG in 2023, with its imports averaging 9.5 bcf/d. Hence, this signifies the increasing growth of the LNG market over the forecast period.

Latin America

Limited LNG Import/Export Infrastructure leads to Moderate Growth

The Latin America LNG market is driven by increasing demand, particularly for power generation, and growing regional LNG imports. While the region has significant natural gas resources, including shale gas, it is unlikely to become a major exporter in the near future due to infrastructure limitations and energy resource development challenges.

However, Brazil is expected to be a key player in the region's LNG market, with high CAGR. Growing investment in LNG import infrastructure and gas-fired power plants is expected to support the region's growing energy demands and promote energy security over the forecast period.

Middle East & Africa

Government Efforts to Reduce Reliance on Traditional Fuels are Expected to Drive Market Growth

The Middle East & Africa LNG market is characterized by a growing demand for cleaner energy, particularly for power generation, and a focus on sustainable shipping practices driven by government efforts to reduce reliance on traditional fuels and meet decarbonization targets.

Furthermore, the Middle East & Africa region is actively adopting LNG as a transition fuel, especially in remote areas with less availability of conventional energy infrastructure. This trend has supported investments in LNG-ready ports, storage facilities, and other necessary components.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Key Players are Focused on Acquiring Long-term LNG Supply Contracts to Fuel Market Share

The LNG market is dominated by a few large players but is expected to become increasingly competitive due to new entrants and expanding demand.  Key players include major international oil and gas companies such as BP, Chevron, and ExxonMobil, along with national energy companies such as QatarEnergy LNG, Gas Authority of India Ltd (GAIL), and Petronet LNG Limited.  In May 2025, QatarEnergy LNG announced plans to ink a long-term LNG supply deal with Japan through its North Field expansion project. The key players compete through strategic investments, long-term contracts, and diversifying their offerings to capitalize on the growing demand for LNG. Asia Pacific, particularly China, India and Japan, is a key market for LNG.

List of Key Liquefied Natural Gas (LNG) Companies Profiled

• Chevron Corporation (U.S.)
• Royal Dutch Shell plc (U.K.)
• Exxon Mobil Corporation (U.S.)
• QatarEnergy LNG (Qatar)
• Cheniere Energy, Inc. (U.S.)
• PETRONAS (Malaysia)
• Woodside Petroleum Limited (Australia)
• TotalEnergies (France)
• BP plc (U.K.)
• Petronet LNG Ltd (India)
• Equinor ASA (Norway)
• Gazprom (Russia)

KEY INDUSTRY DEVELOPMENTS

• In June 2025, Penn America Energy Holdings (PAE) announced plans to build a large-scale LNG Export Terminal at Pennsylvania’s Delaware River. The facility is expected to export 7.2 million tons of liquefied natural gas annually.
• In June 2025, BP Singapore announced a sales agreement with Torrent Power to supply LNG gas upto 0.41 million metric tons per annum from 2027 through 2036, which is aimed at powering Torrent’s combined cycle gas-based plants with a capacity of 2,730 MW.
• In May 2025, GAIL revealed expansion plans for the Dabhol terminal, increasing its capacity to 12.5 mtpa by 2031-32.
• In May 2025, the Government of Qatar announced plans to increase its LNG production to increase trading of LNG cargoes to 30 to 40 million by 2030. The Country’s LNG production capacity is expected to increase to 160 million tons.
• In April 2025, Woodside Energy approved the development of USD 17.5 billion LNG project in Louisiana. This development will allow Woodside to supply approximately 24 Mtpa of LNG by 2030.

Investment Analysis and Opportunities

The developing economies present a significant investment opportunity to the LNG market: 

• In March 2025, Venture Global announced expansion plans with an investment of USD 18 billion to upgrade the Louisiana LNG terminal to the largest LNG terminal in North America. Moreover, the company also proposed to expand the capacity of the Plaquemines plant in the U.S. to 45 MTPA by adding 24 trains to the facility.
• In December 2024, Cheniere Energy, Inc. LNG production from the first train from Corpus Christi Stage 3 Liquefaction Project (“CCL Stage 3”) located in Texas, U.S. The plant is expected to be commissioned by the first quarter of 2025.

REPORT COVERAGE

The global Liquefied Natural Gas (LNG) market report delivers a detailed insight into the market. It focuses on key aspects, such as leading companies. Besides, the report offers regional insights and global market trends & technology and highlights key industry developments. In addition to the factors above, the report encompasses several factors and challenges that contributed to the growth and downfall of the market in recent years.

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