Secretary-General of the Arab Energy Organization (AEO), Jamal Al-Loughani, stated that the liquefied natural gas (LNG) industry has witnessed numerous developments and transformations over the past six decades, expanding and spreading geographically thanks to rapid advancements in technological solutions and innovations.

This came in a statement made by Al-Loughani to the Kuwait News Agency (KUNA) today, Monday, on the occasion of the organization’s (formerly OAPEC) release of a new study titled "Global LNG Markets: Recent Developments and Future Outlook," which reviewed and analyzed modern technological, commercial, and environmental trends, particularly over the last two decades.

He added that these solutions and innovations include liquefaction processes, transportation, regasification and storage, as well as evolving maritime shipping dynamics that have enabled the construction of specialized vessels with improved designs, sizes, and increased capacities—leading to a doubling of the global fleet.

Al-Loughani explained that the energy crisis has highlighted the long-term global role of LNG by outlining future prospects up to 2050, as well as the changes and challenges this industry will face in the short and medium term.

He noted that technological progress has played a major role in the intensive use of floating storage and regasification units (FSRUs), particularly during Europe’s recent energy crisis—since February 2022—by mitigating its impact, buying time, and securing LNG supplies more quickly.

Al-Loughani praised LNG’s role during the Russia-Ukraine crisis, especially in 2022—the most turbulent year in gas market history—as it helped Europe overcome the crisis and proved its value as a flexible, reliable, and accessible energy source.

He added that key suppliers—particularly the U.S., Qatar, Algeria, and Nigeria—played a crucial role in securing additional LNG for Europe and enhancing its energy security.

The Russia-Ukraine crisis, he pointed out, placed LNG at the heart of geopolitical tensions, altering energy dependencies and trade relations.

He emphasized that LNG has gained strategic importance, especially after the European Commission’s decision in May 2022 to replace or phase out Russian gas. These developments have had significant geopolitical repercussions on maritime routes due to security concerns.

Regarding global LNG trade, Al-Loughani noted that LNG trade surpassed pipeline gas due to the Ukraine crisis, as Europe shifted from a "balanced market" to a "demand hub" for LNG.

He highlighted that the U.S., Qatar, and Australia collectively accounted for 60% of global exports in 2022 and 2023. The current crisis also allowed the U.S. to become the world’s top LNG exporter in 2023 for the first time, solidifying its position as a key market player.

On future prospects, he stated that all global LNG demand forecasts show an upward trend, with Asia expected to lead as the primary demand market in the medium and long term, driven by multiple factors.

He added that most new production capacity will come from the U.S. and Qatar, with the latter planning a major expansion of its North Field project to increase LNG output from 77 million tons annually to 142 million by 2030.

For the U.S., he projected that LNG export capacity could double by 2028 if current projects under construction proceed as planned.

However, he cautioned that the industry will face several changes and challenges stemming from complex interactions between economic uncertainties, geopolitical tensions, regulatory complexities—particularly in the EU—and environmental concerns.

Al-Loughani predicted that the North Atlantic region could emerge as a new LNG trade hub, linking the world’s most liberalized markets—Europe and the U.S.—for various reasons.

He also suggested that EU regulatory measures, including recent policy decisions, may push LNG exporters to focus more on non-EU markets.