LNG Faces Instability in the Energy Market of 2024

By Shubhendra Anand , 14 January, 2025

Globally, liquified natural gas (LNG) is increasingly in demand due to the ongoing energy sector scenarios. The transformation from conventional fuels to renewable energy sources is an important trend in the energy sector. Liquified natural gas is considered a better alternative to fossil fuels to enhance clean energy transition in 2024. A survey conducted in 2024 shows that  LNG demands are expected to increase by 50 percent soon. However, the instability in the LNG market is due to specific geopolitical conflicts in 2024. Hence, global LNG transportation may remain unsteady throughout 2024.

The International Energy Agency (IEA) introduced new regulations to stabilize LNG prices. The IEA aims to integrate new mechanisms in the energy sector to boost LNG adoption and stabilize its prices in 2024. Further, it seeks to lower the high global LNG prices. The International Energy Agency anticipates promoting transparency and stabilizing the market prices in 2024. The organization aims to analyze the process of purchasing natural gas across different countries.

Japan faces a more significant impact on the volatility of the global LNG market for countries like Japan, as it is reducing its dependence on LNG imports. Hence, the country will lower its share of the national energy mix in 2024. Another survey states that global LNG demand will reach more than 50 percent by the end of 2040. The data from these surveys cite that Southeast Asian countries rely more on LNG to boost their economy. Globally, nations are choosing LNG in light of the transition to clean energy. It is unsure whether LNG boosts green energy transformation or not. However, it produces less carbon emissions compared to its fossil fuel counterpart. Therefore, worldwide nations are focusing on LNG imports in 2024. This is because complete reliance on fossil fuels hinders transition in the energy sector. Similarly, countries are far from achieving a hundred percent energy supply from renewables.

 The graph shows Japan’s LNG demand to reduce over the years