LNG Will Ride Out the Uncertain Future
The 19th edition of the LNG Supplies for Asian Markets (LNGA) Conference brought together over 250 senior executives and experts from 25 countries to explore the evolving role of LNG in a world shaped by energy transition and geopolitical upheavals. Held in Singapore, the event affirmed LNG’s resilience and its critical place in meeting Asia’s rising energy demands.
Key Takeaways from LNGA 2025
1. Singapore's Strategic Role as an LNG Hub
Singapore continues its commitment to becoming Asia’s premier LNG trading hub. With US$150 billion in LNG trade in 2023 and over 60 global LNG traders based locally, Singapore is advancing infrastructure through a second LNG terminal and expanded bunkering services. The upcoming GasCo will centralize gas procurement and emphasize demand forecasting, diversified sourcing, and contractual flexibility.
2. Sustained Demand from Asia
Energy demand in South and Southeast Asia is expected to grow at ~4% annually, fueled by economic growth, urbanization, and coal-to-gas switching. China remains a major buyer due to favorable pricing, while Southeast Asia’s price-sensitive market is driving long-term demand that is projected to exceed the EU by 2050. It needs to ride the tide of the recent tariff war.
3. Redistribution of LNG Supply Due to the Russia-Ukraine Crisis
The crisis has reshaped global LNG flows. As Russian piped gas to Europe remains restricted, Europe is competing more aggressively with Asia for LNG cargoes, particularly from the Middle East with now uncertain prospects for the U.S. This shift has constrained flexibility and will now force both markets to rethink sourcing strategies.
4. Escalating U.S.-China Trade Dispute and LNG Impact
On 2 April 2025, dubbed "Liberation Day," President Trump announced a sweeping increase in tariffs on Chinese imports. This was followed by China's retaliatory tariff on U.S. imports, including LNG. By 8 April, Chinese LNG buyers were reportedly reselling U.S. cargoes and exploring alternate supply routes to avoid cost burdens. These actions have already begun disrupting trade flows and raising concerns over the long-term impact on U.S. LNG exports to Asia. Industry observers caution that continued escalation could alter project economics and reshape trade alliances in the global LNG landscape.
5. Shifting LNG Contracts Reflect Volatility
As buyers grapple with price swings and reduced flexibility, especially in Europe, LNG contracts are evolving featuring shorter durations, more frequent price reviews, and arbitration clauses. Singapore is increasingly recognized as a legal and commercial hub for LNG contract resolution in Asia.
6. Mixed Outlook on U.S. LNG Oversupply
Some analysts foresee potential LNG shut-ins due to a forecasted global oversupply, while others point to robust demand driven by delayed projects and emerging uses like AI-powered infrastructure. While short-term imbalances may occur, the long-term fundamentals, energy security and decarbonization are expected to stabilize the market.
Conclusion
Geopolitical turbulence, such as the Russia-Ukraine war and the post-Liberation Day tariff escalation, has added complexity to LNG trade. However, LNGA 2025 reinforced industry confidence in LNG as a transition fuel and vital energy source, particularly in Asia. Singapore’s leadership, Asia’s growth, and a maturing LNG market offer strong reasons for optimism.
Looking Ahead to LNGA 2026
LNGA 2025 was made possible through the support of leading industry sponsors and partners including the Energy Market Authority, Enterprise Singapore and Singapore Tourism Board. Join us again in April 2026 for the landmark 20th edition of LNGA.