An LNG vessel in Japan’s Tokyo Bay
Gas readies for its oil moment
The growth in spot LNG is transforming gas into a globalised commodity market
A need to transact naturally leads to markets. But the very nature of the energy industry—large capital investments, long gestation periods, specificity of assets—can lead to very volatile markets, with high risk and the potential for violent boom-and-bust cycles. As a result, the industry can tend away from fledgling competitive markets and towards natural monopolies. Having one large terminal or pipeline is more efficient than having many small ones. On the flip side, monopolies can often ultimately result in lower output and higher prices. Within non-free market value chains, a government normally takes a hand in regulating prices or ensuring ‘security of supply’—and bring with them new p
Also in this section
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
9 March 2026
Energy sanctions are becoming an increasingly prominent tool of US foreign policy, with the country’s growth in oil and gas production allowing it to impose pressure on rivals without jeopardising its own energy security or that of its allies, argues Matthew McManus, a visiting fellow at the National Center for Energy Analytics
