LNG market in Q2 2026
Summary of events in Q2 2026
There is a temporary lull in Middle East. The key word is "temporary." Everything has already happened in Middle East, and it will happen again. Israeli-US attack on Iran in February 2026 was not the first. These attacks are annual, and the previous break in hostilities lasted only eight months, including an intermediate Israeli attacks on Qatar, Palestina, Yemen and Lebanon that has led to escalation. Current hostilities have not eliminated any of the underlying reasons that led to initiation of this war. Moreover, current "peace agreement" between USA and Iran does not include actual initiator of military action, Israel. However, Israel continues to occupy neighboring countries, which contradicts the terms of the "peace agreement." The key reasons for the suspension of military operations include the inability to achieve military objectives with the current arsenal, Trump's declining popularity ahead of the November 2024 elections, and Iran's economic and financial challenges following the blockade of its maritime trade. The parties involved in the "peace agreement" will address these factors in the coming months. During the hostilities, the greatest damage was inflicted on Iran, Palestine, and Lebanon. The exporting countries (Iraq, Qatar, Kuwait, Saudi Arabia, the UAE, and Bahrain) and, to a lesser extent, the importing countries (India, Pakistan, Japan, the EU, and the United Kingdom, as well as the countries of Southeast Asia) were economically affected. The initiators of the conflict have no interest in their fate or aspirations. The United States is making a lot of money by simultaneously increasing market prices and increasing the share of its energy exporters in global markets. The low price of the peaceful market is not beneficial to the United States. The only strategic point for the United States is the financial impossibility of the countries they control from purchasing new U.S. federal debt. The pyramid-shaped nature of the U.S. external national debt requires at least a trillion dollars per year in new money earned by foreign economies and transferred to the United States. Additionally, the emergence of an insider on the stock markets with the power to control the short-term market dynamics is unprecedented. He, his family, and people close to the court make money from market fluctuations, not from their absolute values. As long as this person is in power (which will be until January 2029), he has nothing to fear from investigations by stock exchange commissions. Consequently, the volatility of the leading markets that are accessible to him for insider trading will continue. The leading markets are the oil futures market and the US stock market. Therefore, we can expect more black swans and white swans.
LNG market has found a new balance thanks to seasonally low demand for LNG in Q2, LNG demand destruction (record-low rates of injection into EU and UK UGS, reduced LNG demand in China due to increased pipeline imports, and refusal to purchase expensive LNG to Pakistan and another poor countries in Asia), and rerouting of LNG supplies within Persian Gulf.
Attack by Ukraine, Great Britain and Libya on Russian LNG carrier Arctic Metagaz and low availability of ice and non-ice class LNG carriers for Russian exporters limit possibilities of Russian LNG exports, especially during the first half of a year. With start of summer navigation on Northern Sea Route at Q2 end , the logistics situation for Russian LNG has improved significantly.
As of 02.07.2026, there were 52 LNG plants in the world with total LNG liquefaction capacity of 545 MTPA. 11 plants were fully or partially idle with total non-operational capacity of 106 MTPA, including united LNG plant in Qatar and Das Island LNG in UAE.
In 2026, 41 MTPA of LNG capacity is expected to be commissioned. USA dominates this process - it will account for 65% in 2026. On 23.04.2026, the first LNG cargo was shipped from the first train of Golden Pass LNG plant in USA. Overall capacity of three trains will amount to 18 MTPA. War in Middle East will delay Qatari and Emirati newbuilds.
USA remained to be number one supplier of LNG to the global market in Q2 2026. Australia is the second. Qatar is out of Top 3 (8th place). Russia is the third first time.
As of 08.04.2026, there were 206 regasification terminals in the world with total regasification capacity of 1099 MTPA.
Regasification capacities of 98 MTPA are expected to be commissioned this year. Y-o-Y growth is 9%. China’s share in capacity build up is 36%. Egypt and India are in top 3.
China was the main importer of LNG in the world as result of Q2. Japan is the second. South Korea is the third. India is the forth.
On 03.12.2025, European Council and European Parliament decided to abandon import of Russian gas into EU. Pipeline gas supplies must stop no later than 30.09.2027, and in some cases before 01.11.2027. A transition period is provided for existing contracts. For short-term contracts signed before 17.06.2025, the ban took effect from 25.04.2026 for LNG and from 17.06.2026 for pipeline gas.
As of 01.07.2026, stocks of active natural gas in UGS of EU and UK amounted to 44.7 bcm. Stocks are significantly lower than in previous years. It is the lowest volume after 2021.
As of 07.04.2026, there were 819 operational linear LNG carriers with 58.3 MT of total cargo hold capacity. LNG carriers with 7.5 MT of total cargo hold capacity are expected to be commissioned in 2026. It will be all-time high value. Expected Y-o-Y increase is 21%.
Due to decrease in natural gas production in Persian Gulf region and the blockade of the Strait of Hormuz, export of by products, primarily LPG and helium, has also suffered. Global supply of helium has decreased by a third. On 14.04.2026, Government of Russia restricted export of helium outside Eurasian Economic Union until end of 2027.
LNG plants
As of 02.07.2026, there were 52 large and middle scale LNG plants with sea access in the world, including partially idle ones, with a total operational LNG liquefaction capacity of 454 MTPA. Q-o-Q decrease - 71 MTPA.
11 plants were completely or partially idle with a total non-functioning capacity of 106 MTPA. List of idle plants and trains:
All but one trains of Qatari LNG plants. Two trains of the plant are considered to be destroyed.
Adgas Das Island in UAE. Presumably complex keeps extracting and treating natural gas and supply it to UAE shore via undersea gas pipeline.
Marsa el Brega LNG in Libya.
Yemen LNG.
Train 1 at Atlantic LNG plant in Trinidad and Tobago.
Train2 at Arctic LNG 2 and Cryogaz-Vysotsk plant in Russia
Trains C, D, E of the Botang LNG plant in Indonesia.
Train 2 of the Northwest Shelf LNG plant in Australia.
Damietta LNG plant and Egyptian LNG plants in Egypt. EGAS at Idku discharges rare LNG cargoes from time to time.
Trains at 23 plants (including expansion projects for existing plants and debottlenecking projects) are under construction with new liquefaction capacity of 175 MTPA. Such an extremely high development rate for any industry indicates the upcoming changes in the industry in the coming years, which will be negative for LNG producers.
In 2026, 39 MTPA of LNG capacity is expected to be commissioned. USA dominates this process - it will account for 65% in 2026.
It is highly likely that starting in summer of 2028, LNG will be in relative proficity, which will lead to lower prices. This market conditions will lead USA of clearing again global LNG market from countries they dislike - Russia, Iran (cross-border pipeline gas trade). US attention to Qatar is also likely to increase.
Loading
According to Seala AI, USA remained to be number one supplier of LNG to the global market in Q2 2026. Australia is the second. Qatar is out of Top 3 (8th place). Russia is the third first time.
USA
On 23.04.2026 the first LNG cargo was loaded from the first train of Golden Pass LNG plant. The plant's design capacity is 6 MTPA. The gas liquefaction processes have started in late January, but the first cargo was shipped only three months later. On 25.04.2026, commissioning of the second line began.The third train is expected to be commissioned by the end of 2026. The plant is owned by ExxonMobil (30%) and QatarEnergy (70%).
Capacity optimization of 2.5 MTPA Elba Island LNG plant is underway. The process will be gradually completed by the end of 2027 and will add 400 kt per year to the LNG production capacity.
In Q2 2026, commissioning of 1.64 MTPA trains of Stage 3 of Corpus Christi plant has continued with launch of Trains 5 and 6. Construction works of final Train 7 is about to finish.
Q2 LNG shipments from USA amounted to 32.2 million tons at par with Q1. Utilization of existing by the end of the quarter capacities exceeds 100%.
USA continues to successfully monetize the crisis in Eastern Europe started in 2013 under Biden administration (vice president in 2009-2017, president in 2021-2025) and consequent elimination of Russian energy resources from the European market. Commissioning of US LNG plants is synchronized with the disconnections of Europe from Russian gas and LNG. In the coming years, balancing of West of Suez gas market will be done y USA by limitation of export of Russian pipeline gas and LNG.
Integrared gas market of EU and UK is dominant buyer of Q1 US LNG.
Egypt became the second largest buyer of Q2 US LNG resource with 1.8 million tons.
India became the third largest buyer of Q2 US LNG resource with 1.5 million tons.
USA supplied 1.3 million tons in Q2 to Caribbean countries (Panama, Dominican Republic, Jamaica, Colombia) excluding Puerto Rico.
Details of LNG shipment from the USA are available at the link.
Canada
Q2 LNG shipments from Canada amounted to 2.8 million tons.
Canada LNG is on the way to overcome technical difficulties affecting its core operations. In Q2 it is still not performing on the level of design capacity (1167 kt per month), but becoming close to it.
Q2 cargoes were delivered to East Asia and South-East Asia. Key buyers are South Korea, Japan and China (including Taiwan province). One cargo was delivered to Viet Nam.
Two more local LNG plants are underway:
Woodfibre LNG plant near Vancouver with capacity of 2.1 MTPA.
Cedar FLNG plant next to Canada LNG with capacity of 3.3 MTPA.
Canada LNG capacity build-up
Mexico
Q2 loadings volumes amounted to 360 kt.
Construction of LNG facilities is under way in Mexico - as of 20.04.2026 - 4.7 MTPA capacity is under construction and 25.8 MTPA is planned. All projects except New Fortress Altamira FLNG are located at West cost of Mexico and aimed at deliveries to Pacific countries.
Construction projects (Energia Costa Azul LNG, New Fortress Altamira FLNG) are delayed again.
Сurrent estimate of launch date for 3.25 Energia Costa Azul LNG is summer 2026. US Department of Energy has extended permit for export of pipeline gas from USA to Mexico to this plant until the end of September 2026. The previous permit expired at the end of March. 2.5 MTPA out of overall 3.25 MTPA is contracted by French TotalEnergies and Japanese Mitsui for 20 years. Start of deliveries under these contacts are expected in December 2026.
Сompletion of construction work on the second 1.4 MTPA train of New Fortress Altamira FLNG is expected to be completed in Q4 2026 and commercial operations are expected to begin in H1 2027.
Construction of Amigo LNG plant with a total capacity of 8.4 million tons per year will start soon.
Trinidad and Tobago
Q2 2025 LNG loadings amounted to 2.2 million tons. Utilization of operational capacities of the only LNG plant Atlantic LNG (11.8 MTPA without idle Train 1) - 75%.
Traditionally, LNG from Trinidad and Tobago is shipped worldwide and has a diversified customer base.
Chevron (USA) will hand over its license over Loran offshore gas field in Venezuela to Shell (UK and USA), which owns adjacent Manatee on Trinidad and Tobago side. It is definitely a step to revive production at Atlantic LNG plant and restart 3 MTPA Train 1.
Peru
01.03.2026 an major accident occurred at the largest gas field in Peru. As a result, LNG production was halted.
Ministry of Energy and Mining Industry estimates consequences of the accident as the largest energy crisis for the country in 20 years. A 14-day state of emergency has been declared in Peru. Availability of gas for domestic market has decreased by 10 times.
As a result of the accident, LNG supplies from Peru resumed in the beggining of May and amounted to 742 kt in Q2.
Qatar
Q2 loadings at Ras Laffan amounted to 2.9 million tons. Almost all of Q2 LNG was unloaded at terminals in Persian Gulf, including Bahrain, Kuwait and UAE. Several cargoes passed through the Strait of Hormuz and were unloaded in Pakistan, India, and China.
It is Asia that has been key victim of provocative Israeli attack. China, India, and Pakistan are the largest buyers of Qatari LNG.
On 21.06.2026, an accident occurred at Barzan gas processing plant in Ras Laffan Industrial Plant. 13 workers were killed and 67 were injured. Production facilities were damaged.
As of early July Qatar has the following consequences of the war:
Qatar will need at least two weeks after end of the war and opening of Strait of Hormuz to restore production at remaining 64.6 MTPA capacity of Ras Laffan.
12.5 MTPA of Ras Laffan capacity are heavily damaged and should be rebuild, which will require 3-5 years. Although there are 46.8 MTPA capacities of under construction, which scheduled to be delivered in 2027-2028. It will make up any decrease in Qatari production in mid-term.
Annual Qatari 2026 GDP will shrink at least for 4% for each month of Strait of Hormuz closure.
In scenario of a prolonged halt in military operations in the Gulf and the continued blockade of the Strait of Hormuz, QatarEnergy may restart some of its LNG trains to meet demand for LNG within Persian Gulf. From May to September, demand for electricity and natural gas for its production peaks in Middle East. This will allow restart of several trains at the plant (up to 25% of its capacity).
During this year, 18 MTPA Golden Pass LNG plant in USA will be completely commissioned. QatarEnergy’s share is 12.6 MTPA. It will compensate for destroyed capacity of its plant in Qatar.
Details of Qatar's exports are available at the link.
UAE
The only LNG plant, Das Island (7.6 MTPA), has been shut down since early March and temporarily restarted twice. Q2 LNG production amounted to 411 kt.
The second LNG plant in the country, Ruwais, is expected to be launched in 2029. The plant's capacity will be 9.6 MTPA.
Discharge at regasification terminals in Jebel Ali and Abu Dhabi amounted to 1.1 million tons in Q2. Cargos came mostly from Qatar and also from UAE itself. Traditionally, discharges at these terminals peak in Q3 of each year during heat wave.
The country's largest gas processing plant, Habshan (63 BCMA), stopped operations on 03.05.2026, following an attack. On 16.04.2026, the plant began partial resuming of operations. This plant is critical for UAE's domestic gas market.
ADNOC has and continues to expand its own fleet of LNG carriers. As of 29.04.2026, the fleet has reached 13 LNG carriers. Two LNG carriers have been already added to the fleet in 2026: Al Taweelah (9972971) and Arada(9972969).
Details of Emirati gas market are available here.
Oman
Oman's only LNG plant Qalhat is located on the shores of the Gulf of Oman. The closure of the Strait of Hormuz did not affect shipments from this plant.
LNG loading volumes in Q2 amounted to 3.1 million tons. Plant’s utilization - 107%.
Majority of Q2 cargoes went to India, China, Japan, Thailand and South Korea. Omanese LNG cargoes to India set the record - India is replacing Qatari LNG.
Australia
LNG loadings
Q2 LNG loadings at Australian plants amounted to 19.9 million tons.
In Q1 2025 Australia traditionally became the number one LNG supplier to Japan and South Korea and regain number one in China.
Details of Australia's exports are available at the link.
Papua New Guinea
Q2 2026 loadings at the country's only LNG plant (8.3 MTPA) quarter amounted to 2.2 million tons. Utilization of the design capacity was 107%.
Almost all cargoes went to Japan and China (including Taiwan).
Brunei
Q2 2026 loadings at the only LNG plant (7.2 MTPA) amounted to 1.2 million ton.
All Q2 cargoes went to neighboring East Asian countries - Japan, Taiwan, South Korea and others.
Indonesia
Loadings at Indonesian LNG plants amounted to 3.7 million tons in Q2.
Discharge of domestic Q2 LNG at own regasification terminals amounted to 1.5 million tons (40% of the country's production).
China (including Taiwan), South Korea and Japan and are key external consumers of Indonesian LNG.
In Q2, 2.4 million tons were discharged at Indonesian regasification terminals, which is a record value. Of these, 1.5 million tons were unloaded from Indonesian LNG plants.
Malaysia
Q2 LNG loadings at Malaysian plants amounted to 8.1 million tons. Utilization of the design capacity (32 MTPA) was 102%.
Deliveries of Malaysian LNG to domestic regas terminals amounted to 533 kt (7% of domestic LNG production).
LNG discharges at two Malaysian regas terminals (Pengerang LNG, Melaka FSRU) amounted to 1.8 million tons in Q2. Australia and Malaysia itself are leading suppliers.
In Q2 2026, a regas project of Gas Malaysia (GASM) jointly with Tokyo Gas (Japan) and VTTI (Netherlands and UAE), was legally started. FSRU will be based near Yan in Kedah state. The terminal will have a capacity of 6 MTPA. This project reflects growing domestic gas consumption trend in the country, as well as Tokyo Gas's strategy to expand its sales portfolio in Southeast Asia.
Details of Malaysia's exports are available at the link.
Russia
In Q2 Ukraine, US, EU and UK continue to attack Russian gas supplies to the global gas market:
02.04.2026 - Ukrainian UAVs attacked Russkaya compressor stations of Blue Stream gas pipeline. The attack was repelled.
05.04.2026 - Attempt of Ukrainian agents to blow up gas pipeline between Hungary and Serbia, which is a continuation of Turkish Stream. The attack was prevented.
13.05.2026 - Ukrainian UAVs attacked Astrakhan Gas Processing Plant. A fire was observed at the plant site.
24.06.2026 - Ukrainian UAVs attacked Orenburg Gas Processing Plant and Orenburg Helium Plant. A fire was observed at the plants’ sites.
The attacks have put pressure on Russia's domestic fuel market (gasoline, LPG), as well as reduced oil production in Kazakhstan (Kashagan).
LNG plants loadings
Q2 LNG loading at the plants amounted to 8.1 million tons. On top of it 2.8 million tons were loaded on transhipment hubs (mostly at Kildin island STS zone and floating storage Saam). It is record transhipment volume and was amounted to 35% of LNG production volumes.
4.9 million tons were shipped from Yamal LNG (Sabetta port). EU took over almost all of export cargoes from Yamal and Kildin in Q2. Traditionally, from December to the first half of June, all cargo is sailed westward due to ice conditions in the Arctic. However, from the second half of June to November, cargo is more actively transported in the eastern direction of Northern Sea Route (to China, Japan, South Korea, and other countries).
2.2 million tons was loaded at Sakhalin-2 (Prigorodnoye port). Q2 cargoes went to China and Japan. 2 cargoes went to South Korea.
Per Seala AI data, Arctic LNG 2 Q2 loading 802 kt. At par with Q4 2025 and Q1 2026. It is equivalent to 24% of Train 1 and 2 capacity. Shortage of Arc7 ice-class LNG carriers and discharge terminals have reduced ability to export LNG from Arctic LNG 2. Almost all LNG produced by the plant was transhipped via Saam FSU (9915090) in Murmansk oblast and Koryak FSU (9915105) in Kamchatka on the way to Chinese Beihai terminal. As of now 2 Arc7 LNG carriers are used in shuttle mode - Christophe de Margerie (9737187) and new Russian-made Alexey Kosygin (9904546). The third new Arc7 ice-class LNG carrier Konstantin Posyet (9904704) will join the route in Q3.
As a measure to increase the fleet of non-ice-class LNG carriers, purchases of LNG carriers continue on secondary market. In January, 4 LNG carriers (including Mercuriy - 9326689, Kosmos - 9300817, Orion - 9294264 and Luch - 9317315) were purchased from Omani company Asiad Shipping, and since the beginning of April, they have been flying Russian flag. In May, these vessels have made its first loadings of Artic LNG 2 cargoes in Murmansk region and now are sailing to China.
Another challenge is the lack of regas terminals (except for Beihai) to reach the design capacity of both 6 MTPA trains of the plant.
Medium-tonnage plant Gazprom LNG Portovaya loaded 225 kt. All went to China.
Despite energy crisis, India refused to accept Russian LNG carriers in Q2: Kunpeng (9247194), Perle (9630028). The decision was made and communicated at the government level: Minister of Petroleum and Natural Gas Hardeep Singh Puri personally informed Deputy Minister of Energy of Russia Pavel Sorokin about the decision not to buy LNG during his visit on 30.04.2026. Perle and Kunpen received LNG cargoes in December 2025 from Gazprom LNG Portovaya.
Cryogaz-Vysotsk has been idle in Q2.
Pipeline exports
Summit of Vladimir Putin and Xi Jinping on 19-20.05.2026 did not lead to the signing of a firm contract for gas supplies via “Power of Siberia-2” and the promotion of the implementation of this project. The design capacity of the gas pipeline is 50 billion cubic meters of gas with the launch dates of 2030-2035.
At the same time, “Far Eastern Route” pipeline is being actively implemented. The export gas pipeline is an extension of the existing Sakhalin-Khabarovsk-Vladivostok pipeline. The export section will have a capacity of 12 billion cubic meters per year. It is expected to be launched in early 2027.
In June 2026, Gazprom and Turkish Botas began discussions on renewal of gas supply agreements for Blue Stream and Turkish Stream routes. Current contracts are short-term and were signed last December for a period of one year. Consequently, it will expire on 31.12.2026. In 2025, overall supply amounted to 21.2 bcm (58 mcm per day), which is equivalent for 37% of Türkiye' s total imports of pipeline gas and LNG.
Serbia has once again extended its gas supply contract for 3 months until 30.09.2026. On this day, EU restriction on import of Russian pipeline gas will come into effect. Route for supply of Russian gas to Serbia passes through Bulgaria.
Russia's urea exports are on the rise - in 2025, urea export increased by 9% and reached 11.8 million tons. This is equivalent to 8.3 bcm. Russia is already the world's leading exporter of urea and continues to increase its exports. The largest buyers of Russian urea in 2025 were Brazil, India, USA, and EU. Russia supplies as much natural gas in the form of urea to Brazil as Brazil imports in the form of LNG from all countries. Russian gas supplies to India in the form of urea continue to grow annually, unlike resultless discussions about Russian LNG supplies.
Details of Russian gas market are available at the link.
Norway
Q2 2026 loadings at the country's only large-tonnage plant Hammerfest Snøhvit (4.2 MTPA) amounted to 1.2 million tons. Achieved utilization was 119%. All cargoes went to EU and UK. Lithuania was the biggest buyer of Q2 cargoes.
Small-scale Risivika (330 kt per yer) operated at its design capacity and provided LNG bunkering and small parcels for local consumers.
Mozambique
Q2 2026 loadings at the only LNG plant Coral South (3.4 MTPA) amounted to 1.2 million tons.
LNG from Mozambique is supplied to wide list of countries. Asian countries dominate among the recipients.
Western energy companies keeps developing new LNG projects in Mozambique.
The country's second Coral North floating LNG plant with a planned capacity of 3.4 MTPA is expected to be commissioned at the end of 2027. Owners of both Coral projects are Italian Eni, US ExxonMobil, Chinese CNPC, Korean Gas Corporation of South Korea, UAE’s ADNOC and local Empresa Nacional Hydrocarbons. Mozambique's share in these projects is 10%. LNG sales of ENH’s 10% share are controlled exclusively by Dutch Vitol.
French TotalEnergies keeps development of Mozambique LNG Zone 1, onshore project with 13 MTPA capacity, after lifting force majeure in October 2025. Meanwhile TotalEnergies demands compensation from Government of Mozambique in the amount of 4.5 billion USD for the delay in the implementation of the project.
ExxonMobil’s Rovuma LNG (18 MTPA) project is under development as well. Final investment decision is expected in 2026.
Thus potential Mozambique’s liquefaction capacity is up to 38 MTPA. It could make Mozambique one of the leader of LNG industry.
Details of Mozambique's LNG industry are available at the link.
Angola
LNG exports from Angola amounted to 1.1 million tons in Q1. The plant’s utilization - 89%. Supplies are stable.
India consumed more than half of Q2 resource.
Previously, Angola LNG's main resource was associated gas from offshore oil platforms.
Increase in gas production at depleted Sankha oil field has provided 2.3 mcm per day (0.8 bcm per year) of additional resource for Angola LNG in 2025. At the second stage of production improvement at this field, additional supplies to the LNG plant are expected in the amount of 6 mcm per day (2.2 bcm per year).
Natural decline in oil production led to a decrease in the associated gas resource for the LNG plant. New gas consortium plans to add up to 12 mcm of gas for the LNG plant from the second stage of Quiluma and Maboqueiro gas fields, which will ensure full utilization of the plant and give feasibility for its expansion.
Republic of the Congo
There are two FLNG in the country: 0.6 MTPA Tango FLNG and 2.4 Nguya FLNG. Plants are owned by Italian ENI (65%), Russian Lukoil (25%) and domestic SNPC (10%) with production sharing approach.
Q2 loadings amounted to record-breaking 502 kt.
Equatorial Guinea
Punta Europe floating LNG plant (3.7 MTPA) continues stable shipments. Q2 loading amounted to 610 kt.
Cameroon
Q2 loading amounted 285 kt Cameroon floating LNG plant (2.4 MTPA).
Hilli Episeyo (7382720), which is the basis of this LNG plant, will finish its work in Cameroon in December 2026 and will be moved to Argentina for a new GLNG project.
Nigeria
Volume of loadings at Nigeria's only LNG plant in Q2 amounted to 4.7 million tons at par with record-breaking Q1. Utilization of design capacity (22.2 MTPA) - 87%. Most of the cargo went to India, Portugal and China.
Nigeria continues to actively increase its exports of natural gas in the form of urea. In 2025, exports amounted to 3.4 million tons, which is equivalent to 1.7 million tons of LNG (11% of LNG production in 2025). The increase in urea exports over the past four years is 2.6 times.
Preliminary construction work has begun on a gas pipeline from Warri in Nigeria to Khass R'mail in Algeria. Commissioning is expected in the early 2030s. The pipeline's capacity will be 30 BCMA (82 mcm per day). At the same time, Niger (at least 1 BCMA) and Algeria will take part of the gas as a transit fee.
Mauritania and Senegal
Q2 2026 at Greater Tortue Ahmeyim FLNG loadings amounted to 598 kt. It shows that Greater Tortue Ahmeyim FLNG reached its designed 2.5 MTPA capacity.
Algeria
Loadings at the country's two LNG plants amounted to 2.0 million tons in Q2 2026. Utilization of design capacity (25.5 MTPA) - 31%.
Decline in gas production and prioritization of domestic market and pipeline exports have led to low and continuing to stagnate LNG plant loadings.
EU, Türkiye and UK have consumes all Q2 Algerian LNG.
Details of Algerian exports are available at the link.
Regasification terminals
As of 08.04.2026, there were 206 regasification terminals in the world with a total regasification capacity of 1099 MTPA.
In 2026, it is expected that 90 MTPA of regasification capacity will be commissioned. China will continue to be the leader, with 38 MTPA of new build-up.
Discharge
According to Seala AI, China was the main importer of LNG in the world as result of Q2. Japan is the second. South Korea is the third. India is the forth.
China
LNG infrastucture
China continues to dominate in regas capacity newbuild. China continues to rely on its gas infrastructure and actively develop it. China is flexible in LNG purchases - balancing is carried out by pipeline gas, coal, and hydroelectric power plants.
As of 08.04.2026, there are 38 operating regasification terminals in mainland China with total capacity 165 MTPA (excluding Taiwan province) and 3 terminals with total 20 MTPA in Taiwan province.
PipeChina LNG terminal in Longkou is going to be commissioned during Summer 2026. Capacity of the first stage of the terminal will be 5 MTPA. This terminal will be expected to become the second entry point for blacklisted Russian LNG. Thus, this gas terminal follows the market strategy of Shandong oil terminals, which are specifically focuses at import of crude oil from countries blacklisted by the West (Iran, Russia, and previously Venezuela).
2026 is expected to be a record year for the commissioning of regasification terminals in China - 38 MTPA. Although many projects scheduled to go online this year, previosly was delayed. Probably only a portion of regasification terminals under construction will be completed de facto.
There is already some regional surplus of regas capacity. It led and keeps leading to low utilization levels for new and existing terminals.
LNG import
LNG deliveries to China totaled 14.3 million tons in Q2. Utilization of regasification terminals with 165.4 MTPA design capacity was 35%. Q-o-Q decrease is 431 kt. It is natural with Q2 each year due to low gas consumption in China.
Q2 LNG imports in Taiwan province amounted 6.0 million tons. Utilization of the regas terminals (20.0 MTPA) was 120%. LNG import volumes have been relatively stable for a long time and slowly growing with overall GDP growth.
Israeli-US war against Iran led to halt of Qatari LNG supplies to China since the end of March. Namely Qatar became the leading supplier of LNG to China in 2025. In Q2, China increased its purchases of Australian, Russian and Malaysian LNG. Russia is China's second-largest LNG supplier after Australia.
LNG re-export
In Q2, China re-exported only 2 cargoes - 120 kt. In Q1 re-export amounted to record-breaking 19 cargoes (1.3 million tons of LNG).
Details of Chinese gas market are available here.
Japan
In Q2, Japan imported 13.8 million tons. Q-o-Q decrease amounted 4.7 million tons. However, this decline is traditional due to weak demand for gas in Q2 each year. Last year, decline Q2 to Q1 was 4.3 million tons.
Qatar and UAE are not major LNG suppliers in Japan. Three-quarters of LNG import are based on long-term contracts and oil-indexed formula prices. Japanese import has not suffered due to the closure of Strait of Hormuz. However, due to mechanics of price formulas increase in oil prices will affect cost of LNG import in 2026.
Japanese government continues to successfully obtain “permits” from Trump to import Russian LNG from Sakhalin-2.
South Korea
Q2 LNG import totaled 11.4 million tons. Q-o-Q decrease - 2.7 million tons. This decrease is much bigger than usual seasonal decrease (915 kt last year).
Singapore
LNG deliveries to Singapore in Q2 amounted to 1.4 million tons.
Details of the import and re-export of LNG by Singapore are available at the link.
Thailand
Q2 LNG imports amounted to 3.5 million tons. Utilization of the terminals (19 MTPA) was 74%.
Gas-fired TPPs account for more than half of power generation in Thailand. Therefore, LNG demand strongly depends on seasonality of electricity demand and availability of cheaper sources of electricity (primarily hydroelectric power plants).
The period from March to May is the peak period in terms of electricity demand.
India
Q2 LNG imports amounted 6.6 million tons. This is at the level of Q2-Q3 of previous years. Indian gas demand peaks in summer. As we see, there is no physical shortage of LNG in India. In March, due to stoppage of Qatari LNG, there was a decrease in LNG imports, which was compensated in April. April LNG imports reached a record high.
Qatar became the leading supplier of LNG to India in 2025 (11.8 million tons). UAE, which also are off the market, was the second leading supplier (2.9 million tons).
In Q2, USA became the leading supplier to India for the first time, with a volume of 1.8 million tons, setting a new record for the country. USA has effectively replaced Qatar and UAE as a supplier to India.
Nigeria came in second place with a volume of 1.5 million tons, also setting a new record for the country.
Oman came in third place with a volume of 1.3 million tons, also setting a new record.
Heavy dependence on Qatar in LPG and LNG import lead to signigicant energy crisis in the country. This affects cooking processes of hundreds of millions of poor and low-income Indians. Energy crisis in India has deepen in Q2 due to blockade of Strait of Hormuz and the Iranian coast by USA. India could easily import Russian LNG and LPG at any time with short notice - everything depends on Modi’s desire to execute sovereign energy policy.
On top of it will affect domestic fertilizer productions. Which in turn will lead to lower crops this and next season. In case of prolonged blockade of the Strait of Hormuz prices for locally produced food (starting with wheat) will skyrocket this autumn.
LNG itself accounts for half of India's natural gas market (the rest is locally produced gas). India's energy system is predominantly coal-based and can withstand reduced gas supplies. However, simultaneous market crisis in LNG, LPG, and oil supplies, coupled with rising energy import prices, places immense pressure on India's financial system. Rupee's exchange rate is currently being artificially maintained through burning of Indian gold and foreign currency reserves. Prolonged war in Middle East will inevitably lead to a weakening of rupee and further increases in energy import prices denominated in rupees. All of this leads to a collapse in domestic gas demand, primarily aming domestic fertilizer producers.
In Q2, Indian government initiated a coal gasification program. It is planned to process about 75 million tons of coal per year into gas. This is equivalent to 8% of the country's coal production. India is the second largest country in the world (after China) in terms of coal production and consumption. Design capacity of synthetic methane production is 15 billion cubic meters per year, which is equivalent to 43% of the country's natural gas production. Estimated investments in the project are 135 bAED / 250 bCNY / 3.5 tINR / 2.7 tRUR (in equivalent).
Pakistan
Q2 LNG imports amounted 457 kt. There is severe problem with LNG import under suitable for Pakistan price.
Qatar provided almost 100% of LNG imports to Pakistan. At the same time, Pakistan faced the problem of excess supplies due to stagantion of domestic gas market. In recent years, Pakistan has cancel a lot of Qatari LNG cargoes due to oversupply even under pre-war price levels. In March the problem became the opposite - Pakistan is forced to find all the necessary import volume on spot (!) market. As the result March 2026 discharges shrinked. This will create crisis conditions for poor Pakistani gas market.
In April, Pakistani government began restricting electricity supply (two hours per day) in order to reduce total cost of electricity production and, consequently, amount of subsidies paid from state budget.
Kuwait
Q2 discharge volume amounted to 652 kt.
Traditionally, peak demand for LNG is observed in May-October due to high demand by gas TPP.
Egypt
Q2 discharge amounted to 3.0 million tons, at par with Q1. USA dominates in Egyptian LNG import - 2.9 million tons.
Gas supplies to Egypt from Israeli Leviathan platform in the amount of 28 mcm per day were halted from February 28 to April 3 due to Israeli war against Iran and preventive shutdown of production at the field.
Türkiye
Q2 discharge amounted to mere 711 kt. Traditionally, Türkiye actively imports LNG during the cold months from November to March. During the rest period LNG import is minimal and country relies on piped gas.
Türkiye has expressed desire to extend a contract with Iran for supply of Iranian natural gas, expiring in the end of July. The contract volume is 10 BCMA. Actual supply in 2025 was 7.7 BCM.
Details of Turkish gas market are available here.
EU and UK
Planned tax on external imports of natural gas
European Commission plans to introduce another tax on external import of resources to EU - Methane Regulation (Regulation (EU) 2024/1787). Official wording is based on methane emissions at its production. Transportation and regasification segmets and foreign upstream projects controlled by EU companies will be excluded from the tax. De facto, this is a hidden taxation of gas supplies from USA, Qatar, Algeria, and Azerbaijan.
In December 2025, European Commission proposed to US LNG exporters procedural easining of “audit” of gas fields. US Chamber of Commerce once again rejected both the procedural relief and the entire initiative, as US government basically does not want to pay any tax on its LNG.
Despite all of Trump's threats to limit LNG supplies to EU in case EU does not give up on political and economic controversies with USA, no one seriously believes these threats. US State Department has spent decades methodically building EU's energy dependence on USA and eliminating Russian energy supplies, and no one there wants to voluntarily give them up, when they won.
Gas stocks at UGS
As of 01.07.2026, stocks of active natural gas in UGS of EU and UK amounted to 44.7 bcm.
Gas reserves in UGS in the middle of injection camapign are at a low seasonal level. After challenging gas winters of 2021-2022 and 2022-2023, there has been a relaxation in the minds of gas company executives, which is reflected in gradual decrease in volume of gas injected. EU market has become more decentralized and spot-based.
Q2 2026 EU natural gas futures market was in a backwardation and did not provide market incentives to buy gas now and incur additional storage and financing costs. Everyone is waiting for the opening of Hormuz, resumption of Qatari LNG production, and a decrease in market prices.
Heating season lasted from 17.11.2025 to 02.04.2026.
Net gas injection into UGS in Q2 amounted to 14.9 bcm. This is the lowest value for all summer quarters in history.
Given backwordation of gas futures market, it is unprofitable for private gas companies to buy gas now, store it, pay interest on a trade loan, and then resell it cheaper. Lack of commercial stimulus will lead to reduced volumes of LNG purchases for injection into UGS facilities - injection will be carried out only under pressure from European Commission and national authorities.
LNG import
Q2 discharges of external LNG amounted to 26.0 million tons. Q-o-Q decrease - 8.7 million. This Q2 to Q1 decrease is the record breaking and explained by low gas injection volumes into UGS. This decrease is one of the key factors that relatively balanced the global LNG market in the second quarter.
Top LNG importers in Q2:
France - 4.4 million tons.
Netherlands - 4.2.
Italy - 3.5.
Spain - 3.3.
Germany - 2.6.
UK has traditionally is out of the largest importers list in Q2-Q3. The country imports LNG only during periods of high demand for natural gas due to lack of significant UGS capacity.
In Q2, USA has remaines its marker share in EU and UK - 59%. It fluctuates in the range 57-62% since Q1 2025. In absolute terms import of US LNG amounted to 15.5 million tons. Trump's position is to increase the US share up to 100% as new LNG projects are launched in USA and put EU and UK under full energy dependence on US energy supplies. European Commission accepted risk of complete energy dependence on USA and even started standoff with Qatar and planned complete abandonment of Russian gas import. Presumably next growth of US LNG share is scheduled for Q1 2027 at expense of Yamal LNG.
Russia took the second place in Q2 with 4.8 million tons and market share in the amount of 18%. Russia supply LNG to EU only from Yamal. And simultaneously EU takes almost all Yamal LNG cargoes during Q1-Q2. Yamal LNG is traditionally taken by 4 countries - Spain, France, Belgium and Netherlands. Other EU countries are avoiding Yamal LNG even in time of gas crisis. On 03.12.2025 European Council and European Parliament decided to limit EU countries from possibility to import Russian pipeline gas and LNG. LNG supplies under current short-term contracts signed before 17.06,2025 are “allowed" until 25.04.2026.
Algeria came in third place with volume of 1.6 million tons and 6% market share.
Details of LNG imports by EU countries are available at the link.
Ukraine
Gas reserves at UGS as of 29.06.2026 amounts to 6.6 bcm, which is the highest in SVO era. Injection of natural gas into UGS has started on 13.03.2026. In total, Ukraine needs to have about 8-9 bcm by beginning of heating season, which is significantly less than storage volumes of pre-SVO era. It is expected that injection campaign will be completed by the end of gas summer in a planned manner. Currently, there are no logistical or financial restrictions.
All gas purchases are financed by EU and Norway in the form of direct or indirect loans and grants. EU funding comes from supranational European Commission, with all costs ultimately will bear by taxpayers. Norway finances Ukrainian gas supply de facto from additional revenue it receives from exporting gas and oil to EU at inflated prices due to Ukraine.
Almost all molecules of natural gas imported by Ukraine comes from Texas and Louisiana.
All gas purchases are financed by EU and Norway in the form of direct or indirect loans and grants. Almost all injected molecules of gas are coming from Texas and Louisiana.
Fleet
Current fleet
As of 07.04.2026, there are 819 operational linear LNG carriers, excluding bunkering vessels, FSRU, FLNG, FSU and combined LNG and LPG carriers, with 58.3 MT of total cargo hold capacity.
Newbuild
LNG carriers with 7.5 MT of total cargo hold capacity are expected to be commissioned in 2026. It will be all-time high value. Expected Y-o-Y increase is 21%.
South Korea is the leader in LNG shipbuilding. Japan, historic leader in the construction of gas carriers, systematically stopped their construction for internal economic reasons. South Korea has won this competition and currently dominates among existing fleet and among LNG vessel under construction.
China pursue South Korea, moving from building relatively cheap oil tankers and bulk carriers to building much more expensive LNG carriers. China is the number two shipbuilder of LNG carriers right now with a dynamically growing market share. Prospects of Chinese shipbuilding are limitless.
18.06.2026 new Arc7 ice-class LNG carrier Konstantin Posyet (9904704) were commissioned by SKK Zvezda. In addition, two new LNG carriers Petr Stolypin (9904675) and Sergey Witte (9904687) are expected to be completed by Zvezda shipyard in 2026.
In March 2026, Novatek created a subsidiary Northern Engineering for construction of LNG carriers. Taking into account that Ilya Luschikov, who also heads the Murmansk LNG project, is in charge, it is likely that this new LNG gas carrier construction site will be based on dry dock of Center for construction of large-capacity offshore structures in Belokamenka, Murmansk region. In this case, this means a refocus of Novatek construction of floating LNG trains, which are not in demand under current market conditions, to construction of ice-class LNG carriers, which Novatek really needs to export LNG from Yamal and Artic 2 LNG plants.
Market view for Q3 2026
Primary natural gas consumption in southern gas markets will be higher in July and August due to the seasonal heat. On top of it Q3 demand will also be determined by EU's storage filling tactics, as current reserves are at their lowest level since 2021.
“Truce" between USA and Iran is unlikely to last long. In the event of a resumption of war activities, situation on global LNG market will return to the status quo that was observed in March 2026. Paid nature of passage of Strait of Hormuz will not have a significant impact on global LNG market, the key thing is possibility to export Qatari and Emirati LNG from Persian gulf.
India, Pakistan, and Bangladesh are the main victims of the closure of the Strait of Hormuz and their loyalty to USA in energy policy area.
In Q3, we may see an increase in LNG trade within Persian gulf itself. In scenario of a prolonged halt in military actions in the gulf and the continued blockade of the Strait of Hormuz, QatarEnergy may restart some of its LNG trains to meet demand for LNG within Persian gulf. From May to September, demand for electricity and natural gas for its production peaks in Middle East. This will allow restart of several trains at the plant (up to 25% of its capacity).
Trump can add new shock to the LNG market again at any time, including new tariff , new wars (bombing Iran, seizing Greenland and other), beginning of new round of pressure on Russia or China and even new round of trade war against EU. Absolutely any thought can come into his red head. After the war US financial system has seriously deteriorated, world LNG market is moving towards a surplus - therefore something will definitely happen after easening of Middle Eastern war. A gas summer is a convenient period for this volatility. Russian LNG is the most likely target. New pressure on Yamal LNG and Sakhalin-2 is likely in 2026.
Notes:
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