Energy company Woodside overlooked in investment opportunities
The global liquefied natural gas (LNG) market is currently experiencing strong growth with a positive outlook, driven by surging demand, especially in Asia, and efforts to diversify gas supplies after disruptions related to the Ukraine war.
Key players in this growing market include Woodside Energy, an Australian company that has recently expanded its presence by merging with the oil and gas arm of miner BHP. Woodside is aiming to become one of the world's largest LNG players, with nearly half of its output currently LNG.
Woodside's Scarborough LNG project is expected to deliver its first gas in 2026, with an expected peak output of 8 million tonnes per annum (mtpa). The company has six LNG carriers under long-term agreements and many more under short-term contracts.
Last month, Woodside paid $2.4 billion to acquire a low-carbon ammonia project in Texas, further solidifying its position in the global LNG market. In 2022, the company also paid $900 million to acquire Tellurian, a US firm struggling to develop the Driftwood LNG project.
Europe, as one of Russia's largest energy customers, was significantly impacted by the Ukraine war. With key pipelines cut off, Europe had to find new supplies, turning to the LNG market for these new supplies. The global energy market had to rebalance as a result of the changes.
The global LNG demand and supply trends forecast a dip in natural gas demand in 2025 but a rebound in 2026 fueled by a 7% surge in LNG supply from the US, Canada, and Qatar. This reflects easing market tightness and revived demand in Asia, key LNG consumers.
Floating LNG capacity, which allows production closer to offshore gas fields, is expanding rapidly. Rystad Energy projects FLNG capacity will triple from 14.1 million tonnes per annum (Mtpa) in 2024 to 42 Mtpa by 2030 and further up to 55 Mtpa by 2035. This growth reflects improved operational efficiency and cost reduction, making FLNG increasingly viable and a flexible alternative to onshore LNG.
The LNG virtual pipeline market, enabling flexible LNG transport where traditional pipelines do not exist, is growing at a CAGR of 5.4% from 2025 to 2035, reaching $2.6 billion by 2035. This supports LNG distribution to remote or underserved regions.
Since lifting a permitting pause in early 2025, the US has accounted for nearly 95% of all new LNG capacity sanctioned globally in H1 2025. Projects on track could add nearly 295 billion cubic meters per year of LNG export capacity by 2030 — the largest wave ever. US developers like Venture Global are strongly advancing plans to produce over 100 million tons of LNG per year by 2030.
In summary, the global LNG market outlook is robust, with expanding capacity—especially from floating LNG and significant US project ramp-up—enabling growth in regional supplies, including Europe's increased LNG imports for energy security post-Ukraine war disruptions. Woodside Energy, as a key participant, benefits from these structural shifts, while technology and infrastructure developments contribute to LNG’s vital role in the energy transition and geopolitical resilience.
