Global LNG Supply Capacity to Rise by 250 Million Tonnes
Industrial energy users should prepare for a shifting supply landscape as new infrastructure projects come online through 2029.
Updated on Oct. 16, 2026 in Oil and Gas
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Global liquefied natural gas (LNG) capacity is set to expand by 250 million tonnes annually as projects currently under construction come online. This surge in supply, coupled with emerging market demand across Africa, is reshaping the global trade landscape ahead of a projected market glut by 2029.
Why it matters
Producers are aggressively seeking new demand centers to mitigate a forecasted oversupply, while volatile conditions in the Strait of Hormuz are driving an urgent industry-wide push to diversify supply routes.
Global projects currently under construction add 250-million tonnes of annual LNG capacity to the market. Developing nations such as the Ivory Coast are securing 10-year agreements for floating regasification units to integrate this supply into their power grids.
The players
Exmar
A global provider of floating LNG storage and regasification solutions used to facilitate fuel imports in developing markets.
Mozambique
A key LNG exporting nation currently hosting major regional production projects.
Nigeria
A major energy producer aiming to scale up its LNG export infrastructure to capture global market share.
The details
The expansion requires significant capital investment in downstream infrastructure, including import terminals, pipelines, and gas-fired power stations to receive and process incoming fuel. As global production capacity rises, operators in new markets like South Africa, Kenya, and Namibia must build out these specialized facilities to facilitate commercial viability. This infrastructure push is critical for energy security, particularly as shipping bottlenecks in the Strait of Hormuz threaten established supply lines.
Timeline
Late 2026 is the expected date for the final investment decision on the Mozambique Rovuma project.
Nigeria plans to increase its LNG export capacity beginning in 2027.
A global LNG market glut is projected to begin in 2029.
Market Landscape
The current push for infrastructure development follows a pattern set by the shipping disruptions in the Strait of Hormuz, which underscored the risks of concentrated energy supply routes. Operators are now positioning themselves to balance this capacity surge against a structural shift toward supply diversification.
Operators in emerging import markets should evaluate the capital requirements for gas-receiving infrastructure, as 250-million tonnes of new capacity will likely increase competitive pressure on existing supply contracts. Financial projections should account for potential price volatility as the market approaches the 2029 glut threshold.
The takeaway
The projected 2029 market glut signals that producers are entering a period of aggressive infrastructure development to secure new import markets. Business leaders should track regional investment trends in pipeline and power terminal development as a primary indicator of future energy cost stability.
What happens next
Market participants should monitor the late 2026 final investment decision for the Mozambique Rovuma project, which will serve as a key signal for regional supply shifts.
Further reading
For more on evolving fuel supply dynamics, visit Oil and Gas.
Source note: This article includes information reported by Business Day.
Live Poll
Should African nations prioritize building natural gas import infrastructure to meet their growing energy demands?
