GasLog Partners, a subsidiary of GasLog ltd, has reported a significant increase in the demand for liquefied natural gas (LNG), forecasting it to rise by 60% by the year 2035. This prediction comes as part of their financial results presentation for 2025, highlighting the role of large-scale projects that have received approval to proceed, with the United States expected to meet 38% of the global demand. On the other hand, ongoing geopolitical developments, particularly Europe’s move to reduce reliance on Russian natural gas, are also key factors driving this expected growth.

For the year 2025, GasLog noted that the spot market has been under pressure for most of the year due to low demand and oversupply of capacity. As a result, the average spot rates for TFDE carriers (160,000 cubic meters, with 0.1% boil-off) were approximately $24,245 per day. This reflects a significant reduction of 42.6% year-on-year and a staggering 68.5% decline compared to the five-year average, indicating a challenging market environment for LNG carriers in the short term despite positive long-term outlooks.

The prediction of increasing LNG demand is crucial for understanding the future of energy markets and the economic ramifications for countries reliant on gas exports. It underscores the necessity for strategic planning both in energy production and logistics, especially as nations like the US ramp up their production capabilities. The implications of shifting energy supplies could also affect geopolitical relations, particularly as Europe strives for energy independence from traditional sources. Overall, this forecast presents both challenges and opportunities for stakeholders in the natural gas industry.