Skip to main content
  1. Home
  2. Magazine
  3. LNG Industry
  4. June 2026
  5. Editorial comment

June 2026

Quick links

Editorial comment

Although we’re technically still in spring in the northern hemisphere (astronomical summer doesn’t start until the summer solstice on 21 June 2026),1 Europe has been experiencing unusually high temperatures in late May.

Register for free »
Get started now for absolutely FREE, no credit card required.

The heatwave has been affecting much of Western and Central Europe, including Germany, Spain, France, Italy, and the UK, with temperatures across parts of Europe around 10 –15°C above average for this time of year. More than 350 French towns – mainly in the west of the country – have recorded their highest-ever temperatures for May, reaching 37.1°C.2 The UK has also noted its hottest May temperatures on record, beating the previous maximum May temperature of 32.8°C recorded in 1922, and matched in 1944. Across the late-May Bank Holiday, the UK broke the record two days in a row: first, with 34.8°C on 25 May, before exceeding that to hit 35.1°C on 26 May.2

Of course, electricity demand is increased with these higher temperatures, creating peak loads that can strain power grids. This will not be helped by the conflict in the Middle East, which is continuing to affect global LNG markets. Despite some reports that minimal shipping activity has resumed, there is still supply uncertainty, higher prices, and changes in buyer behaviour being reflected throughout the market.

As has been widely covered, Qatar has been heavily impacted by the conflict; in addition to damage to its existing facilities (such as Ras Laffan), it has also resulted in a delay to new projects – most notably the Qatar North Field East project, which was due to export its first cargo at the end of 2026. The first shipment of LNG is now expected in late summer 2027, with a delay to subsequent trains. This could hold back 8 million t of y/y supply growth from the market in 2027, increasing further in 2028.3

European countries increased imports of LNG after reducing their reliance on Russian pipeline gas, exacerbated by the implementation of a complete ban on spot and short-term contracts as of spring 2026.4 As a result, countries are facing increasing competition with Asian buyers for US and Australian LNG cargoes. And with around 20% of supply capacity currently removed from the market as a result of the Middle East conflict, the continent is looking for alternative sources. SEFE Securing Energy for Europe has recently signed a heads of agreement with Ksi Lisims LNG for 1 million tpy of LNG on a free-on-board basis, with deliveries expected to begin by the early 2030s, for up to 20 years.5

The US LNG sector is also benefitting as a result of the conflict due to its reputation as a ‘geopolitically safer’ option. For example, BOTAS and Argent LNG LLC have signed a memorandum of understanding for the delivery of US-origin LNG into Türkiye, with onwards transmission of gas into neighbouring markets.6 Many projects are continuing to reach final investment decision, receive export extension authorisation, or execute expansions, such as Cheniere, which has provided limited notice to proceed to Bechtel for Train 7 at the Sabine Pass liquefaction expansion project (Phase 1).7 These steps to increase LNG capacity might help offset part of the Qatari disruption, but even if Qatari exports resume shortly, there will still likely be a drop in global supply.8

The regional report in this issue, courtesy of Enverus, provides an outline of the global LNG landscape in 2026, going in to more detail on supply and demand, prices, the importance of geography, and what to watch for in the near future. Another topic of discussion throughout the issue is artificial intelligence. The technology is making great strides, including as a tool for the LNG industry, and the articles in this issue consider different applications for it, including digital and structural twins and automation, and how this can improve energy resilience, help with LNG trading, and improve process optimisation.

References

  1. ‘Summer: the warmest season’, Met Office, https://weather.metoffice.gov.uk/learn-about/weather/seasons/summer
  2. HENLEY, J. and JONES, S., ‘Record May highs sweep across France as extreme heat hits western Europe’, The Guardian, (25 May 2025), www.theguardian.com/world/2026/may/25/france-highest-ever-may-temperatures-spain-heatwave
  3. NIGHTINGALE-SMITH, A., ‘Weather tracker: deadly May heatwave shatters records across Europe’, The Guardian, (29 May 2026), www.theguardian.com/environment/2026/may/29/weather-tracker-deadly-may-heatwave-shatters-records-across-europe
  4. ‘Russian gas imports: Council gives final green light to a stepwise ban’, European Council: Council of the European Union, (26 January 2026), www.consilium.europa.eu/en/press/press-releases/2026/01/26/russian-gas-imports-council-gives-final-greenlight-to-a-stepwise-ban
  5. ‘SEFE signs Heads of Agreement with Canada’s Ksi Lisims LNG’, SEFE, (27 May 2026), www.sefe.eu/en/media/newsroom/press-releases/press-release-detail_2688.html
  6. ‘TÜRKIYE STEPS FORWARD AS REGIONAL ENERGY ANCHOR — BOTAS AND ARGENT LNG SIGN MoU’, EINPresswire, (18 May 2026), https://world.einnews.com/pr_news/913032760/t-rkiye-steps-forward-as-regional-energy-anchor-bota-and-argent-lng-sign-mou
  7. ‘Bechtel Greenlit for Sabine Pass Liquefaction Expansion in Southwest Louisiana’, Bechtel, (28 May 2026), www.bechtel.com/press-releases/bechtel-greenlit-for-sabine-pass-liquefaction-expansion-in-southwest-louisiana
  8. LEWIS, D. and SCHMITT, L., ‘Need to know: European natural gas market Summer 2026’, Wood Mackenzie, (20 April 2026), www.woodmac.com/news/opinion/need-to-know-european-natural-gas-market-summer-2026

View profile