Global LNG supplies are ‘sold out’ for years, top importer Japan warns

Global LNG supplies are ‘sold out’ for years, top importer Japan warns

Japan warns that global competition for liquefied natural gas (LNG) is set to intensify over the next three years due to an underinvestment in supply.

Long-term LNG contracts that start before 2026 are sold out, according to a survey of Japanese companies conducted by the trade ministry and released Monday. These types of contracts are essential for buyers, as they offer stable pricing and reliable supply for many years.

Countries around the world are scrambling to secure shipments of the power plant and heating fuel from major exporters like Qatar and the US, but there is little new supply coming online before 2026. Meanwhile, Europe is racing to replace Russian pipeline gas with LNG, further exacerbating the global shortage of fuel.