Natural gas is facing declining demand in several major electricity markets across Europe and Asia, signaling a shift in the global energy landscape that could affect future liquefied natural gas (LNG) exports. Data from the energy think tank Ember indicate that gas-fired power generation decreased in 2026 compared with 2025 in key countries including the United Kingdom, the Netherlands, Türkiye, Japan, South Korea, and China.

Despite the reduction in gas use, total electricity production in these countries has increased, suggesting alternative energy sources are gaining ground. This transition comes amid ongoing global supply uncertainties and price volatility exacerbated by the conflict in the Middle East.

In the Netherlands, a prominent gas trading hub, natural gas contributed to just under 32% of electricity generation in the first nine months of 2026—the lowest rate for that period in recent years. This marks a significant fall from nearly 60% in 2020. Similarly, the United Kingdom saw gas’s share drop to approximately 29% so far this year, compared to about 41% during the same months in 2022. Türkiye’s dependency on gas for power generation declined to just under 11%, down from an average of 32% in 2021.

Asian markets mirror this downward trend. Japan’s share of gas in electricity generation fell below 30% for the first time, reaching 28.4%, supported by growth in renewables and the revival of nuclear energy. South Korea’s gas share dropped to a multiyear low near 29%, while China recorded a historic low of just over 3% in its electricity mix.

These shifts indicate that power producers are increasing output without relying on natural gas, leveraging renewable energy, energy storage technologies, and nuclear power to meet demand. Although gas remains critical for ensuring grid stability amid fluctuations in renewable output, its role is evolving more toward system balancing rather than expanding overall supply.

For LNG-exporting nations and companies investing billions in new infrastructure, these developments raise concerns about long-term market prospects. The continued decline in gas-fired electricity generation challenges assumptions about growing demand, potentially complicating efforts to find buyers for increased LNG production amid changing energy consumption patterns.