Global Natural Gas Market to Remain Tight Through 2027

(MENAFN) The worldwide natural gas market is projected to stay constrained until 2027, as the ongoing conflict in the Middle East along with damage to regional energy infrastructure continues to interfere with supply flows and postpone an expected surge in new liquefied natural gas (LNG) capacity, according to the International Energy Agency.

In its most recent quarterly gas market assessment, the International Energy Agency explained that the conflict has notably reshaped global gas expectations, amplifying price instability and delaying the anticipated improvement in global supply-demand balance.

Interruptions to maritime traffic through the Strait of Hormuz since early March have generated “unprecedented uncertainty,” effectively taking nearly 20% of global LNG supply out of circulation and driving gas prices in both Asian and European markets to their highest point since January 2023.

This disruption has undone a period of rebalancing observed during the 2025/26 winter season, when global LNG trade increased by 12% year-on-year from October through February, while benchmark gas prices across Europe and Asia declined by approximately 25%.

However, market dynamics changed abruptly in March after the conflict resulted in the practical shutdown of the Strait of Hormuz for LNG shipments. As a consequence, global LNG output dropped by 8% compared with the previous year, as reduced exports from Qatar and the United Arab Emirates were only partially balanced by increased production from other producing regions, the International Energy Agency reported.

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