LNG 2023: Last year’s energy shock still reverberates, as the world builds towards LNG oversupply

The briefing reports a global pipeline of 917 mtpa in new LNG export capacity and 705 mtpa in import capacity, representing an estimated US$1 trillion investment. It warns that a wave of new projects coming online by the middle of the decade, primarily in the United States and Qatar, could lead to market saturation and unprofitable stranded assets. The report highlights that while Asia and Europe are the primary developers of import capacity, demand in these regions is uncertain due to decarbonization goals and price sensitivity. It further notes that many projects are already facing delays or cancellations, and that the buildout in the U.S. may conflict with national interests by raising domestic gas prices and increasing emissions.

• The global pipeline of new LNG projects in development includes 917 million tonnes per annum (mtpa) of export capacity and 705 mtpa of import capacity, with an estimated total investment of US$1 trillion.
• A significant supply glut is expected by the middle of the decade, as half of the new export projects under construction are located in Qatar or the United States. This could result in stranded assets, with an estimated US$118 billion in projects failing to recover initial investments if climate goals are met.
• Asia and Europe account for approximately 90% of all new LNG import capacity in development, though demand growth in these regions is questioned due to Europe's decarbonization agenda and price sensitivity in Asia.
• The United States is the leading developer of new export terminals with 336.9 mtpa, and its capacity could increase by 80% as five new projects come online. However, this buildout is argued to raise domestic gas prices and exacerbate environmental injustice in the Gulf Coast.
• Russia maintains the second-largest pipeline of in-development export projects at 164.1 mtpa, despite the EU's goal to eliminate Russian gas imports this decade. Notably, EU imports of Russian LNG increased by 40% in the first seven months of 2023 compared to the previous year.
• In Sub-Saharan Africa, the Coral South FLNG Terminal in Mozambique began operating in late 2022, but other mega-projects in the country remain stalled due to insurgency in Cabo Delgado province.
• Australia is implementing policies to ensure domestic gas availability and reduce emissions, including a July law requiring new LNG facilities to be carbon neutral and existing ones to reduce emissions by at least 4.9% annually through 2030.

APA

Global Energy Monitor (2023). LNG 2023: Last year’s energy shock still reverberates, as the world builds towards LNG oversupply. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_LNG_Oversupply_23.pdf

Chicago

Global Energy Monitor. LNG 2023: Last year’s energy shock still reverberates, as the world builds towards LNG oversupply. 2023. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_LNG_Oversupply_23.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=LNG 2023: Last year’s energy shock still reverberates, as the world builds towards LNG oversupply |date=December 2023 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_LNG_Oversupply_23.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2023lng, author = {{Global Energy Monitor}}, title = {{LNG 2023: Last year’s energy shock still reverberates, as the world builds towards LNG oversupply}}, institution = {Global Energy Monitor}, year = {2023}, month = dec, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM_LNG_Oversupply_23.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }