- Rising electricity demand and geopolitical risks are increasing LNG’s strategic importance in global energy security.
- Buyers now seek flexible, diversified LNG supplies alongside long-term contracts to protect against market disruptions.
Rising electricity demand and geopolitical risks are strengthening LNG’s role in securing reliable energy supplies globally. Industry leaders discussed the shift during the “LNG in the Age of Electrification: Contracting, Competition and Demand Realities” executive panel. Carlos Pascual, SVP and Head of Geopolitics and International Affairs at S&P Global Energy, moderated the discussion.
Pascual said electrification now supports economic growth, healthcare, education, mobility and sustainability. He also highlighted artificial intelligence as a growing driver of electricity demand and energy planning. Consequently, Pascual said electricity, natural gas and LNG now carry greater national security importance.
Energy Security Gains Greater Importance
Dr Kongkrapan Intarajang, CEO and President of PTT, said recent energy disruptions reinforced the importance of secure supply. “Security and stability of supply are most important,” Intarajang said. Thailand currently produces about 50% of its natural gas domestically and imports the remainder.
Meanwhile, rising electricity demand from electrification and data centres continues to increase the importance of LNG diversification. Stephane Michel, President of Gas, Power and Renewables at TotalEnergies, also stressed supply security. TotalEnergies supplies around 10% of the global LNG market, according to the discussion.
“Security of supply will remain something that is absolutely key,” Michel said. However, Michel argued that policymakers should focus less on choosing between gas and renewables. Instead, he said the central competition remains between gas and coal as countries seek reliable electricity.
LNG Buyers Seek Greater Flexibility
LNG buyers have also changed their procurement strategies as supply risks increase. Liz Westcott, CEO and Managing Director of Woodside Energy, said customers previously prioritised efficiency and cost optimisation. “Customers have been looking to have just-in-time LNG. They’re now looking to think about: do we have just-in-case LNG?” Westcott said.
She added that buyers increasingly value portfolio diversity across regions and suppliers. Therefore, diversified supply arrangements can help customers manage geopolitical and market risks more effectively. Mohamed Al Aryani, President of International Gas at XRG, also highlighted the growing demand for flexibility.
“Customers are telling us two things: they like long-term sustainable supply they can plan around, but they’d like flexibility they can manage around,” Al Aryani said. The comments point toward broader LNG value chains connecting production, trading, marketing and power generation.
Reliable Electricity Becomes The Core Priority
Utilities are also redefining energy security around dependable electricity delivery. Dr Narin Phoawanich, Governor of the Electricity Generating Authority of Thailand, described this changing priority.
“The security of supply is changing to reliable electricity supply,” Phoawanich said. As a result, energy companies and governments increasingly need flexible infrastructure and durable commercial relationships.
Intarajang also stressed the importance of adaptability as energy markets face continued uncertainty. “We are living in a world where nothing is certain, so we need to plan for a lot of flexibility and adjustability,” he said.
The panel therefore highlighted LNG’s evolving role as electricity demand, artificial intelligence and geopolitical risks reshape global energy planning.