Overview

A global expansion of midstream gas and LNG infrastructure is being driven by exporters, such as the United States, and gas-consuming regions, including Asia and Europe.

Midstream gas infrastructure — pipelines, terminals, and liquefied natural gas (LNG) carriers — forms the backbone of regional and global gas networks, connecting extraction sites with downstream end users. LNG enables gas delivery anywhere with a regasification terminal and has driven recent expansion, despite comprising only 13% of gas consumed globally. Gas exporting countries are building infrastructure to monetize reserves, while importing countries cite growing energy demand in power, industrial, and heating sectors; energy security concerns; and perceptions of gas as a "transition fuel," despite LNG having emissions on the same order as coal.

China, Russia, and India collectively account for nearly half of the approximately 206,000 km of gas pipelines in development across the world. There is enough proposed LNG export capacity planned globally to triple existing operating capacity, led by the United States, Russia, and Mexico. Regionally, Asia and Europe are developing 85% of prospective LNG import capacity, concentrated in China, India, Germany, and the United Kingdom. LNG carriers are built almost exclusively in South Korea and China, and the global fleet is set to expand by at least 35% based on current orders.

Despite the scale of midstream gas infrastructure in planning, LNG remains economically risky. Expensive LNG terminals, gas pipelines, and LNG carriers could be underutilized or become stranded assets if enough gas demand does not materialize, especially since LNG is frequently uncompetitive against alternative energy sources like renewable power and coal.

Methodology

Frequently asked questions