LNG flexibility is powering the next era of global energy security

Woodside Energy’s recent final investment decision on its Louisiana LNG export facility — part of over 90 million tonnes of new US export capacity expected this year — underscores a defining reality of today’s energy landscape: liquefied natural gas (LNG) is no longer a transitional fuel. It is a strategic pillar of global energy security.

In a world confronting escalating geopolitical risk, volatile supply chains, and rising energy demand — particularly from emerging markets and AI-driven digital infrastructure — LNG offers a unique combination of scalability, dispatchability, and emissions-reduction potential. It is not merely bridging the gap to a low-carbon future; it is enabling that future to be secure, reliable, and equitable.

Security, affordability, and adaptability

Renewables, nuclear, and biofuels are critical to decarbonisation, but none can yet provide the round-the-clock reliability required by modern economies. LNG fills that gap — not as a competitor, but as a partner to clean energy. When the wind doesn’t blow and the sun doesn’t shine, LNG ensures continuity. That flexibility is essential for keeping the lights on and costs down.

A rigid, one-size-fits-all transition strategy — overly reliant on variable renewables — risks triggering new crises: energy shortfalls, price spikes, and socio-political backlash. Countries must tailor their energy strategies to their own economic structures, resources, and development priorities. In this context, LNG remains a vital and versatile ingredient in a secure energy mix.

Emerging markets are leading the demand surge

Countries from Japan to Morocco are doubling down on LNG. ENEOS Holdings is scaling up LNG investment to ensure affordable, long-term supply. Morocco’s approval of its first LNG import terminal reflects a broader trend across the Global South, where governments are turning to LNG to fuel growth, displace coal, and meet development goals.

According to Shell’s LNG Outlook 2024, global LNG demand is projected to rise by more than 50% by 2040. Much of that growth will come from Asia and Africa, where urbanisation and industrialisation require scalable, flexible power generation. LNG enables these economies to grow without locking in high-emission infrastructure.

Venture global and the next wave of US LNG supply

The United States is emerging as a cornerstone of global LNG supply, with companies like Venture Global leading the charge. Its Plaquemines LNG project in Louisiana, now under construction, will add 20 million tonnes per year of capacity when complete — significantly enhancing global supply diversity. Like other US projects, Venture Global’s modular construction model and flexible contract structures are reshaping how LNG is delivered, offering both speed and adaptability in a tightening global market.

By enabling LNG cargoes to flow where they are needed most — from Europe in times of crisis to Asia during peak demand — US producers like

Venture Global are reinforcing the resilience of global energy systems and insulating markets from geopolitical volatility.

LNG as a climate and system enabler

The narrative that LNG delays climate progress is increasingly out of step with reality. Replacing coal with LNG has already delivered major emissions reductions — by as much as 50% in countries like Japan and South Korea. In the United States, the switch to natural gas has been the largest contributor to falling power sector emissions over the past two decades.

LNG also stabilises power grids, allowing for more renewables. Across the US, gas-fired generation has prevented blackouts and smoothed renewable integration. This balancing role will become even more important as energy demand rises due to electrification and the exponential growth of AI-powered data centres.

As the global energy transition enters a new phase — defined by higher demand, rising complexity, and increased climate urgency — LNG is emerging not just as a bridge, but as a foundation. For policymakers, investors, and consumers alike, LNG offers something rare in today’s energy debate: certainty.