Global Gas Market in Flux: Prices Diverging as LNG Trade Shifts

Global Gas Market in Flux: Prices Diverging as LNG Trade Shifts
Graph source: @worldbankdata on X (platform)

The world market for natural gas is diversifying as the LNG trade changes how and when things are moved around. In late 2025, the World Bank’s gas price index went up slightly, but the trend in prices looks very different depending on where you live. In the United States, natural gas prices kicked up above $5/mmbtu for the first time in three years due to cold temperatures and, on top of other things, increased LNG shipping over to Europe. Throughout Europe, prices for natural gas fell again this week, reaching an all-time low since early 2024 based on declining demand and increasing volumes of LNG imports.

In 2025, there was a sizable decline in gas consumption due to decreased consumer purchases (s) due to an increase in unit cost for natural gas and economic conditions affecting consumer spending. Europe saw the majority of the increase in consumption driven by colder temperatures and limitations on renewable energy production, as well as storage needs. In Asia, natural gas consumption was flat, with a drop in China’s LNG imports because of greater domestic production and lower industrial activity. It is expected that gas consumption will again increase at a slow rate (e.g., regain some market share) as industrial and electrical demand grows from the Asia Pacific region in 2026. On the supply side, North America produced large volumes of natural gas and pushed global production growth; however, Russian pipeline and LNG supply dropped due to sanctions and curtailed exports. Going forward, gas prices will continue to diverge further due to increased geopolitical tensions, severe weather events, and growth in energy demand resulting from data centers.


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