Event Summary
Geopolitical forces continue to impact LNG demand and supply, but the potential growth in Asia remains strong
The 2025 LNG Supplies for Asian Markets (LNGA) Conference (the 19th edition) is a dedicated annual event in the Asian region that provides a platform for discussions, dialogue and debate focusing on the rapid changes in the global LNG market. LNGA brings together C-suite executives and decision-makers in the LNG value chain from gas producing, processing and liquefaction; and LNG shipping, trading and marketing and distribution groups from both corporations and governments.
The conference was opened by Mr Alvin Tan, Minister of State for the Ministry of Trade & Industry. He discussed the critical role of gas and LNG in the energy transition to power Asia’s economic growth. Mr Tan also discussed the Singapore government’s strategy on how to support the LNG market, specifically to “Go Big,” “Go Green” and “Go Forward.”
Overview
LNGA 2025 took place in the wake of US President Donald Trump’s announcement of tariffs on several of the US’ largest trade partners. Another much-discussed topic was the ongoing Russia-Ukraine crisis’ impact on the market. Asia, however, emerged to be a bright spot amidst the gloom, as industry experts saw great opportunity for LNG in the region.
Dr Fereidun Fesharaki, Chairman, FGE, then delivered the LNGA 2025 Crystal Ball where he shared his vision on the future of LNG markets.
“The Crystal Ball sees the tariffs as having minimal impact on energy. Many people are worried that these tariff wars are going to create a big problem in the energy field. We have had these tariffs before,” said Dr Fesharaki, as part of his predictions for the LNG market.
Mr Yuya Hasegawa, Director, Energy Resources Development Division, Agency for Natural Resources and Energy, Ministry of Economy, Trade & Industry, Japan discussed how LNG will play a critical role in Japan’s new energy policy and will still be an important energy source even after achieving carbon neutrality.
“Lacking in natural resources and exposed to natural disasters, Japan has to prepare for diversification of energy sources,” said Mr Hasegawa.
More than 250 attendees from 25 countries were represented at LNGA 2025, from the Asia Pacific, Middle East, Europe and North America regions, with the largest delegations from Singapore, Papua New Guinea, Qatar and Japan. Many attendees return to LNGA year after year, due the conference’s outstanding content and opportunities to network with the unique attendee mix, which includes both buyers and sellers.
About 50% of delegates participating at the conference were from Singapore, representing senior executives of major power companies, government/regulatory authorities, LNG trading companies, international oil and gas companies, and professionals advising the energy sector. In addition to the three major suppliers of LNG, Australia, Qatar and the US, LNGA 2025 also had a strong Middle East contingent, ranging from LNG producers to national oil companies, such as QatarEnergy, Adnoc Gas, Oman LNG, Kuwait Petroleum Corporation and Saudi Aramco. Strong representation was also visible from the US market with speakers, delegates and sponsors from North American companies including Cheniere, Chevron, Commonwealth LNG, ExxonMobil, NextDecade, Sempra, Western LNG and Pembina Pipeline Corporation.
LNGA 2025 again featured the much welcomed special LNG Veterans Panel comprising key veterans in the LNG industry as well as the LNG Buyers, Supply and Trading panels with major key traders, sellers and buyers forming the respective panels.
The top six takeaways from LNGA 2025 Conference
- Singapore will continue to invest in supporting its desire to be the key LNG trading hub in Asia
- Strong demand for LNG in Asia, with rising markets in South- and Southeast Asia
- Implications of the Russia-Ukraine crisis on global LNG dynamics: Redistribution of supply and increased LNG demand from Asia, Europe
- Trump-o-nomics: Mixed views on whether the US President’s policies would positively or negatively impact the global LNG market
- LNG contracts will increasingly reflect market volatility and, in Asia, are becoming more prescriptive
- Some say there will be shut-ins in the US as the market tilts towards an oversupply, but others say no.
Singapore will continue to invest in supporting its desire to be the key LNG trading hub in Asia
Singapore, which has more than 60 global LNG traders, is positioning itself as a key LNG trading hub in Asia. In 2023, USS$150 billion worth of LNG trade was conducted through Singapore. The island-nation is in the process of developing a second LNG terminal, with aims of increasing its capacity by 50%. It is also in the process of gathering bids to expand and improve LNG bunkering services in the Port of Singapore. Enhanced bunkering in Singapore would expand fleet utilisation for LNG, which could be a way for China to trade around US tariffs.
The government-owned gas company, GasCo, will procure gas using a centralised framework for Singapore’s power sector, in support of Singapore’s strategic plans for LNG. The soon-to-be-formed entity would operate based on these principles:
- Emphasis on a long-term outlook for gas demand, considering short-, medium-, and long-term needs.
- Diversification of gas sources across regions, suppliers and contract terms.
- Flexibility in gas contracts to adjust to demand fluctuations.
Strong demand for LNG in Asia, with rising markets in South- and Southeast-Asia
South and Southeast Asia is set to surge at an annual rate of about 4% with growing air conditioning and coal-to-gas switching. Sellers expect Asian LNG demand to grow, with China retaining its position as a significant buyer. The price-sensitive market of Southeast Asia is also expected to drive demand over the longer term. By 2050, energy demand in Southeast Asia is estimated to overtake that of the European Union (EU).
In 2024, China’s basket price of domestic natural gas production plus pipeline and LNG imports led to an LNG price of US$8-9/MMBtu, which translated to many Chinese buyers buying LNG. LNG trucking is an emerging market, about 10% of the domestic LNG market, but it is very price sensitive. Some speakers, however, have observed that the Northeast Asian LNG demand has not been as strong as that from South- and Southeast Asia.
Implications of the Russia-Ukraine crisis on global LNG dynamics: Redistribution of supply and increased LNG demand from Asia, Europe
There was much debate and disagreement on whether Russian pipeline gas would ever come back in a meaningful way to Europe as well as its possible impact on LNG demand. LNGA Insiders thought that Russian piped gas would come back in some capacity, though not at original levels, thereby leading to less LNG imports into the EU. Others thought it unlikely that any Russian piped gas would go to the EU, especially Western EU, and that LNG will remain part of the gas supply mix for many decades to come.
In recent times, the LNG trading environment has had to deal beyond fundamental factors, with geopolitical events such as the fallout from the Russia-Ukraine crisis and tariff disputes impacting trade flows. Portfolio players need to navigate these situations while ensuring security of supply and sourcing stability. Some pipeline Russian gas might return in the short term following a peace agreement, although the long-term supply relationship between Russia and Europe has fundamentally changed. In the near term, Asia will continue to heavily draw upon Middle East and Atlantic Basin LNG supply in order to meet its needs, as there is a big gap between the region’s demand and supply.
Previously, the flexibility required to balance out the unpredictability in the Asian utility market came from drawing cargoes away from the European gas market. That flexibility has since been taken away, given Europe’s increasing call on LNG imports. Now, Europe needs to compete with Asia for LNG from US and beyond for its own marginal supply needs. In January 2025, 86% of US LNG was going to Europe compared to 2023, when it was two-thirds of US volumes.
Trump-o-nomics: Mixed views on whether the US President’s policies would positively or negatively impact the global LNG market
Tariffs imposed by President Trump are likely to cause inflation but some energy players have managed their risk by locking most of their EPC costs upfront. No one knows how long the tariffs are going to last nor what its long-term effects could be, but the tariffs are seen as a negotiation tool, leverage to reduce US trade deficits through trade in oil and gas.
There was some speculation as to whether a possible effect of the tariffs was that US LNG exports would get more expensive because of tariffs on EPC equipment that is manufactured outside of the US. So far, the US’ current tariff on Chinese imports (15%) has had negligible short-term impact on the LNG market. No one wants a trade war, so there might be room for negotiation. [Editor’s note: The US tariff on China imports has since been increased to 54%, as of 3 April 2025.]
Trump seems to be going in the opposite direction from the previous administration when it comes to being green, which could create market volatility as it is contradictory to the European stance.
Also, Dr Fesharaki’s Crystal Ball said that there is more gas in the US than anybody could use. He added that the tariffs Trump says he will impose on China will not have a substantial impact on the flow of energy.
LNG contracts will increasingly reflect market volatility and, in Asia, are becoming more prescriptive
Supply security and affordability have eclipsed sustainability as the main issues facing the industry. Buyers in the utility space will have to contend with two issues, because of the reduced flexibility of Europe’s LNG supply: Price volatility will translate to demand volatility, and they will increasingly be drawn into the spot market and short-term contracts. Partnerships will be key to riding out the boom-and bust-cycles, by balancing short-term incentives with longer-term business relationships.
The maturing LNG market in Asia has led to some interesting developments in contracts between buyers and sellers, observed a Singapore-based lawyer. Price reviews are becoming more common in long-term LNG contracts. There has also been a shift from resolving issues amicably to more prescriptive approaches involving arbitration. Singapore is also emerging as a place with growing expertise on arbitration of LNG contracts.
Some say there will be shut-ins in the US as the market tilts towards an oversupply, but others say no
A trader estimated that there will 200 million tons of construction in the next five years, which some believe could lead to shut-ins in the US. Some panelists say that if it happens, it will not be in the next three to four years. Currently, demand is strong due to projects being delayed and the price of Henry Hub going up, with some people attributing the strong demand for gas to the use of artificial intelligence. However, some industry insiders believe that shut-ins may happen in the shorter-term to balance the market.
A global energy company said that the so-called LNG glut forecast for later this decade is unlikely to have a significant and sustained impact on the market. However, if there is a glut, the excess will be absorbed due to energy security and decarbonisation needs.
CONCLUSION
Much was said about volatility in the LNG market, caused by geopolitical forces amongst other factors, but most speakers agreed that the prospects for LNG were good due to its role as a transition fuel and increasing demand from Asia.
President Trump has caused a stir with his announcement on tariffs and “drill, baby, drill” agenda, but some LNG experts do not believe his administration will change the trajectory of production. Many, however, believe the US will use the tariffs as a negotiating tool with its trade partners. Looking over to Europe, the Ukraine-Russia crisis has changed the LNG landscape in that region. Now, Europe competes with Asia for supply.
On a positive note, the growing call for more sustainable fuels, increasing demand for electricity due to the rising use of artificial intelligence and demand from developing Asian countries will mitigate the LNG market’s lows and highs. The Asian LNG market, as a whole, is maturing, with China, India and Southeast Asia driving the region’s demand. Singapore, in particular, is intent on becoming a regional LNG trading hub through a three-pronged strategy, “Go Big,” “Go Green” and “Go Forward.”
LNGA 2025 enjoyed outstanding industry support from a record number of corporate sponsors. We extend our sincere thanks and appreciation to our following sponsors:
Inside LNGA 2025 Photo Gallery:
https://bit.ly/lnga2025-gallery
A Word From Conference Connection
We would like to pay special thanks to the Energy Market Authority, Enterprise Singapore and Singapore Tourism Board, who supported the conference.
We look forward to seeing you at the 20th LNG Supplies for Asian Markets 2026, planned for April 2026.