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The latest International Energy Agency (IEA) report on the international natural gas market for the first quarter of 2026 shows that, following relatively strong growth in 2024, global demand for natural gas slowed down significantly in 2025 due to weak industrial activity in the first half of the year and persistently high prices for spot liquefied natural gas. The report is optimistic about the growth prospects of the natural gas market in 2026; it predicts that the spread of liquefied natural gas will drive strong growth in global demand for natural gas, potentially reaching the fastest growth rate since 2019, with China and emerging markets in Asia being the main drivers. The report shows that the supply side will remain relatively tight in the first half of 2025. Although global liquefied natural gas supply increased by 4% year-on-year in the first half of the year (around 10 billion cubic meters), the decline in pipeline deliveries to Europe from Russia and Norway offset part of this growth. Additionally, the EU stepped up injections into its gas storage facilities, further tightening the market; as a result, benchmark gas prices in Europe and Asia rose 30% and 40% year-on-year, respectively. However, in the second half of 2025, the growth rate of global liquefied natural gas supply increased to 10%, reaching around 28 billion cubic meters, resulting in a more relaxed supply and demand situation in the market. Global liquefied natural gas production is set to increase by nearly 7% in 2025, reaching around 38 billion cubic meters, with about three-quarters of this increase occurring in the second half of the year. The Praklin LNG plant in Louisiana, United States, contributed over 60% of the increased supply, playing a key role in alleviating market tensions. Compared to the same period in 2024, natural gas futures prices at the Dutch Transfer Facility (TTF) and Asian spot liquefied natural gas prices declined by 14% and 17% respectively in the second half of 2025. The report’s analysis indicates that global natural gas demand growth has been suppressed by macroeconomic uncertainties and supply shortages in the first half of 2025. The growth rate of natural gas demand will slow down significantly by 2025, with global natural gas consumption increasing by less than 1%. Growth is driven primarily by Europe and North America; natural gas demand in Asia remains weak, while demand on the Eurasian continent has declined. In Europe, natural gas demand increased by 3%, partly due to rising consumption in the power sector amid a decline in wind and hydroelectric power generation ； Driven primarily by lower winter temperatures, natural gas consumption in North America increased by about 1%. In comparison, the growth rate of natural gas demand in Asia in 2025 dropped to its lowest level since 2022. China’s imports of liquefied natural gas dropped by 14% year on year ； Affected by Russia’s milder winter climate, natural gas demand in the Eurasian region declined by about 2%. Driven by the oil and gas substitution effect in the power industry, total demand in Africa and the Middle East is expected to increase by 2.5%. The report shows that by 2025, the global annual approved liquefied natural gas production capacity will exceed 90 billion cubic meters per year, with the amount of investment approved being second only to that in 2019. The United States is leading a new cycle of investment in liquefied natural gas capacity. By 2025, the investment decisions related to liquefied natural gas production capacity in the United States will exceed 80 billion cubic meters per year, setting a new record for the U.S. liquefied natural gas industry. These projects include the Louisiana LNG project, Corpus Christi LNG Units 8 and 9, Phase 1 of the CP2 project, the Rio Grande LNG Unit 4, and Phase 2 of the Port Arthur project. This new round of projects will reinforce the United States’ position as the world’s largest supplier of liquefied natural gas. By 2030, the United States’ share of the global liquefied natural gas market is expected to rise from around 25% in 2025 to about 33%. Global natural gas trading volumes in key markets reached record highs in 2025. Natural gas trading at the Henry hub in the United States increased by 8%, while trading of natural gas in the European Union and the UK is expected to rise by around 17%. Despite a decline in China’s purchases of spot liquefied natural gas, trading volume of key natural gas derivatives in Northeast Asia still increased by 35%. Correspondingly, there has been a significant increase in the signing of global liquefied natural gas trade contracts. The annual volume of liquefied natural gas transactions under the contracts signed in 2025 exceeded 130 billion cubic meters, setting a record for the past 10 years. The United States alone will account for around 50% of the total volume of contracts in 2025, while European buyers’ orders for liquefied natural gas have also doubled compared to 2024, reaching nearly 25 billion cubic meters. The report shows that reforms in Asia’s natural gas market are continuing to deepen. In 2025, China introduced new measures to facilitate effective access by third parties to its natural gas transmission and distribution systems. India implemented a simplified unified tariff system for natural gas transportation in order to reduce disparities in the utilization rate of gas pipelines. Malaysia released a \"Natural Gas Development Roadmap\" aiming to expand third-party access to its natural gas infrastructure. Singapore established a new state-owned entity responsible for overseeing the procurement and supply of natural gas for the country’s power generation companies. The EU, for its part, reached an agreement in December 2025 to gradually stop importing Russian natural gas, further reducing energy ties between Russia and the EU. Since the outbreak of the Russia-Ukraine conflict in 2022, Russia’s pipeline gas deliveries to the EU have dropped by 90%. The report predicts that the EU will completely stop importing Russian natural gas by November 2027, putting an end to its reliance on this resource that has lasted for over 50 years. It is estimated that EU-related measures will reduce Russia’s pipeline and liquefied natural gas supplies to the EU by 33 billion cubic meters between 2025 and 2028. The accelerated growth in liquefied natural gas supply will drive up the global demand for natural gas in 2026. The report predicts that global liquefied natural gas production will increase by more than 7% in 2026, exceeding 40 billion cubic meters. North America continues to be the main driver of growth, with the United States, *** and Mexico expected to account for over 85% of the global increase in liquefied natural gas supply by 2026. The main drivers of global natural gas demand growth will come from China and emerging markets in Asia. Gas demand in the Asia-Pacific region is expected to grow by 4% in 2026, accounting for about half of the global increase in demand ； Natural gas demand in North America is expected to remain roughly unchanged, while in Central and South America it may decline by 1% due to improved hydroelectric power generation ； The continued expansion of renewable energy in Europe is expected to reduce natural gas demand by 2% ； If the Eurasian continent returns to normal climate conditions, natural gas consumption is expected to increase by 3.5% ； Driven by increased demand for gas in the industrial and power sectors, natural gas demand in Africa and the Middle East will increase by 3.5% in total. (Reporter Wang Baokun)