Global LNG Supply to Expand by 250 Million Tonnes
New construction projects aim to bolster energy capacity as markets prepare for a potential global surplus by 2029.
Updated on Oct. 16, 2026 in Oil and Gas
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Global liquefied natural gas (LNG) capacity is set to increase by 250 million tonnes annually as massive construction projects continue worldwide. The U.S. currently leads this capacity build-out, which precedes an anticipated market glut expected to begin in 2029.
Why it matters
Producers are actively seeking new demand centers to absorb future supply, while recent shipping disruptions in the Strait of Hormuz emphasize the urgent need for diversified gas routes. Developing nations are positioning themselves to capitalize on this shift by expanding their import infrastructure.
Global LNG capacity under construction currently totals 250-million tonnes annually. Meanwhile, Ivory Coast has secured a 10-year agreement for a floating storage and regasification unit to support its growing power needs.
The players
Exmar
Exmar is a Belgian maritime company that specializes in floating solutions for the oil and gas industry, including storage and regasification units.
The details
Nations including South Africa, Kenya, Ivory Coast, and Namibia are exploring new import markets to utilize the increased global supply. These countries must now invest heavily in pipelines and regasification terminals to successfully integrate LNG into their domestic power grids.
Timeline
Late 2026 is the expected timeframe for a final investment decision on the Mozambique Rovuma project.
Nigeria plans to increase its national LNG export capacity starting in 2027.
A global LNG market glut is projected to begin in 2029.
Market Landscape
The current rush to build import infrastructure serves as a strategic hedge against the projected 2029 global LNG market glut. By developing regasification terminals, emerging markets aim to secure affordable energy supplies before a massive influx of production hits the international market.
The expansion of global LNG infrastructure may eventually lead to more stable energy pricing for consumers in regions that successfully transition to gas-fired power. However, residents in developing markets may face short-term utility costs as governments fund the construction of necessary import terminals and pipelines.
The takeaway
The ongoing shift toward increased LNG capacity signals a transition in global energy logistics as nations race to prepare for a supply-heavy market. Consumers should monitor regional power infrastructure investments, as these projects will determine how effectively the anticipated market surplus translates into domestic energy security.
What happens next
A final investment decision regarding the Mozambique Rovuma project is scheduled for late 2026, while Nigeria is slated to expand its export capacity in 2027.
Further reading
For broader trends in the sector, explore the latest developments in Oil and Gas.
Source note: This article includes information reported by Business Day.
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Should African nations prioritize building natural gas import infrastructure to meet their growing energy demands?
