Table of Contents
Overview
New York, NY – Dec 03, 2025 – The global liquefied natural gas (LNG) market is on a strong growth path, rising from USD 113.5 billion in 2024 to an estimated USD 294.4 billion by 2034, supported by a projected 10% CAGR from 2025 to 2034. Asia Pacific holds a leading 46.20% share, driven by fast-growing energy demand, urban expansion, and fuel-switching policies across major economies.
LNG is produced by cooling natural gas to about –162°C, greatly reducing its volume and enabling efficient long-distance transport where pipelines are unavailable. Its cleaner-burning nature compared to coal and oil makes it a preferred option for power generation, heavy industry, and energy security planning. The LNG market spans liquefaction, global trade, storage, regasification, and final consumption, all closely tied to national fuel strategies and infrastructure investment decisions.
Market growth is reinforced by large-scale capital commitments that reflect long-term confidence. Notable examples include NextDecade’s USD 1.8 billion financing for the Rio Grande LNG project and SK Innovation’s 5 trillion-won LNG liquefaction deal, both expanding global supply capacity.
Demand further benefits from integrated clean-fuel initiatives, such as Canada’s USD 49 million hydrogen liquefaction investment and the USD 140 million hydrogen plant permit in North Vancouver. In parallel, Air Liquide’s €110 million EU grant for an ammonia-to-hydrogen project shows how LNG infrastructure can coexist with emerging low-carbon fuel systems, strengthening its role as a transition energy source.
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Key Takeaways
- The Global Liquefied Natural Gas Market is expected to be worth around USD 294.4 billion by 2034, up from USD 113.5 billion in 2024, and is projected to grow at a CAGR of 10% from 2025 to 2034.
- The liquefied natural gas market grows strongly as liquefaction holds 58.2%, driven by rising global export capacity
- Liquefied natural gas market demand rises as power generation leads with a 56.4% share globally.
- The liquefied natural gas market benefits from electric utilities holding 41.8% due to stable fuel needs.
- The Asia Pacific records a strong market value of USD 52.4 Bn overall.
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Report Scope
| Report Features | Description |
|---|---|
| Market Value (2024) | USD 113.5 Billion |
| Forecast Revenue (2034) | USD 294.4 Billion |
| CAGR (2025-2034) | 10% |
| Segments Covered | By Type (Liquefaction, Regasification), By Application (Transportation Fuel, Power Generation, Others), By End Use (Electric Utilities, Industrial, Residential, Transportation Sector, Others) |
| Competitive Landscape | British Petroleum (BP) p.l.c., Chevron Corporation, China Petroleum & Chemical Corporation, Eni SpA, Equinor ASA, Exxon Mobil Corporation, Gazprom Energy, PetroChina Company Limited, Royal Dutch Shell PLC, Total S.A. |
Key Market Segments
By Type Analysis
In 2024, liquefaction dominated the By Type segment of the Liquefied Natural Gas Market with a 58.2% share, reflecting its essential role in supporting the fast-growing global LNG trade. This leadership is driven by the need to convert natural gas into a compact, transportable liquid form, making it possible to supply distant markets that lack direct pipeline access.
The 58.2% market share also signals a clear investment shift toward expanding liquefaction capacity, as exporting countries focus on securing long-term supply contracts and stable export revenues. With cross-border LNG demand on the rise, liquefaction plants have become a strategic priority for ensuring a reliable fuel supply and meeting cleaner energy requirements. These facilities form the backbone of LNG value chains, directly enabling international trade flows.
As governments and utilities transition away from higher-emission fuels, liquefaction continues to serve as the key upstream enabler supporting energy security, flexible fuel sourcing, and the growth of gas-based power generation and industrial systems worldwide.
By Application Analysis
In 2024, power generation led the By Application segment of the Liquefied Natural Gas Market, accounting for a 56.4% share. This dominance reflects the accelerating shift toward cleaner fuels as countries aim to reduce emissions from electricity production while meeting rising power demand. LNG is widely used in modern gas-fired power plants because it delivers dependable baseload electricity with significantly lower emissions than coal or oil.
The 56.4% market share also highlights LNG’s growing role in supporting renewable energy integration. Utilities increasingly depend on LNG-fired plants to respond quickly to demand fluctuations and to stabilise grids during periods of intermittent solar and wind generation.
As energy policies continue to emphasise flexibility, reliability, and cleaner power generation, LNG remains a critical fuel choice for utilities. Its ability to balance sustainability goals with secure electricity supply continues to reinforce LNG’s importance within national and regional power strategies.
By End Use Analysis
In 2024, electric utilities dominated the by end-use segment of the Liquefied Natural Gas Market, holding a 41.8% share, highlighting their increasing reliance on LNG for dependable and cleaner electricity generation. As countries reduce the use of high-emission fuels, utilities are turning to LNG to support stable baseload power while aligning with stricter environmental standards.
The 41.8% market share also reflects LNG’s value in managing power system variability. Electric utilities use LNG-fired plants to respond quickly to changes in demand and to complement intermittent renewable sources such as wind and solar. This flexibility helps maintain grid reliability during peak consumption and supply fluctuations.
With electricity demand continuing to rise and energy transition goals gaining momentum, LNG remains a preferred option for utilities seeking a balanced mix of reliability, lower emissions, and energy security. As a result, LNG continues to underpin long-term planning and resilience across national power infrastructures.
Regional Analysis
Asia Pacific leads the Liquefied Natural Gas Market with a 46.20% share, valued at USD 52.4 billion, driven by heavy LNG use in power generation, industrial activity, and national energy security strategies. Strong growth in electricity demand has pushed countries in the region to expand import terminals and regasification infrastructure, supporting long-term consumption. The region’s dominance also reflects a clear shift toward cleaner-burning fuels as part of sustainable energy planning.
North America continues to show stable LNG growth, supported by abundant natural gas resources and ongoing expansion of liquefaction capacity. Its strong production base and export infrastructure reinforce its position as a major global LNG supplier.
Europe maintains consistent LNG demand as countries diversify fuel sources to improve supply security and reduce reliance on traditional energy routes. Meanwhile, the Middle East & Africa focus on upstream LNG development by adding liquefaction capacity and improving export potential. Latin America is increasingly adopting LNG to stabilise power generation, particularly where renewables require flexible gas-based support.
Top Use Cases
- Power-generation fuel: LNG is burned in power plants to generate electricity, offering a lower-emission alternative to coal or oil. Using LNG helps reduce pollutants and CO₂, while supplying a stable, reliable energy output to support national grids.
- Industrial energy and feedstock: Industries use LNG both as a heat or energy source (for processes needing high heat) and as a raw material feedstock for chemical production (fertilisers, plastics, etc.). This supports manufacturing where pipelines may not reach.
- Maritime fuel / marine transport: Ships and vessels can use LNG instead of traditional bunker fuel. LNG as marine fuel burns cleaner, reducing sulfur oxides and particulate emissions — helping shipping companies comply with stricter environmental standards.
- Heavy-duty land transport fuel: LNG can power heavy-duty trucks, buses, and other vehicles, offering a cleaner alternative to diesel or gasoline. For long-haul or remote transport, LNG helps lower emissions while delivering fuel for regions lacking pipeline infrastructure.
- Energy supply to remote / isolated areas: Because LNG can be transported by sea or in insulated transport containers, it enables supply of natural gas to regions lacking pipeline connections — providing energy for power, heating or industry where pipelines are not viable.
- Backup and peak-demand energy source: LNG can be stored as a liquid and then regasified when demand spikes (peak demand) or when pipeline supply is constrained. This flexibility makes LNG valuable to utilities needing to ensure grid stability during fluctuations or emergencies.
Recent Developments
- In December 2024, Chevron agreed to purchase 2.0 million tonnes per annum (mtpa) of LNG from Energy Transfer’s proposed Lake Charles export terminal in Louisiana under a long-term sale & purchase agreement (SPA). The LNG will be supplied on a free-on-board (FOB) basis, helping secure long-term supply to support Chevron’s global gas strategy.
- In November 2024, BP gave a green light to a US$ 7 billion expansion of its existing LNG project in Indonesia (the Tangguh LNG project in Papua), which includes developing a new gas field.
- In November 2024, Sinopec signed a 15-year LNG import deal with TotalEnergies for 2 million metric tons per year, starting in 2028. This move strengthens Sinopec’s long-term LNG supply pipeline and supports China’s energy-transition goals
Conclusion
The liquefied natural gas market continues to play an important role in the global energy landscape as countries seek reliable and cleaner fuel options. LNG supports electricity generation, industrial activity, transportation, and energy access in regions without gas pipeline networks.
Its flexibility in storage and long-distance transport makes it valuable for balancing energy supply and demand. As more nations focus on lowering emissions while maintaining energy security, LNG serves as a practical transition fuel alongside renewables.
Ongoing investments in infrastructure, trade partnerships, and cleaner technologies are strengthening its role in modern energy systems. Overall, LNG is expected to remain a key contributor to stable and diversified global energy supply in the years ahead.
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