The big question: Is LNG entering a new boom thanks to data centres?

LNG is seen as the key transition fuel. It is a slightly cleaner, hydrocarbon-based fuel with a predictable and reliable range of supply sources. The war between Russia and Ukraine has accelerated the role of LNG in Europe, with countries in the region seeking more stable, long-term supplies from sources such as Australia, Qatar and the US.

The energy demand from data centres is placing a new, high-level and long-term pressure on energy supply and infrastructure. It’s not just LNG that is powering this sector, as we have seen in the US, but also renewable power and, to some extent, revitalised technologies such as nuclear energy. Hydrogen-based fuel cells are also beginning to attract attention as an alternative for sustainable backup power. The data centre demand is certainly adding a lot of supply requirement, and is powering development across many supply sources.

The war between Russia and Ukraine has accelerated the role of LNG in Europe

The LNG boom is here. Data centres, with their AI and cloud expansion plans, are multiplying, with new long-term investments announced in many countries. For these projects, energy supply and security will be paramount. Downtime isn’t an option – and logistics plays an important role in ensuring this.

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We’re certainly seeing strong growth. The LNG market has been transformed, particularly amid the diversification of supply sources in Europe and the growth in demand in Asia. Major capacity additions from Qatar, the US and Africa are reshaping global energy trade patterns.

The AI and data centre demand has emerged rapidly. These facilities need reliable, continuous power, and gas-fired generation is playing a crucial role in meeting those needs. Many tech companies see gas as a practical solution to ensure grid stability as they scale operations.

The flexibility and reliability of gas complement the broader energy transition

What makes this period unique is how gas is positioning itself. LNG infrastructure investments are accelerating because the flexibility and reliability of gas complement the broader energy transition. It’s providing energy security while other technologies mature.

I think ‘growth phase’ is more accurate than ‘boom’ – it’s substantial, but also strategic. Different regions are experiencing this in different ways; some are seeing rapid expansion while others are more measured. The fundamentals are strong: rising global energy demand, the need for reliable baseload power, and LNG’s role in energy security all point to continued growth for the foreseeable future.

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The gas sector is entering a new phase of growth, fuelled by LNG’s expanding role in global trade and increasing energy demands for data centres. As a lower-carbon alternative to coal and oil, LNG is uniquely positioned to serve as a bridge technology in the energy transition, balancing sustainability with reliability.

This growth brings technical challenges that need to be addressed to ensure continued success. Cryogenic temperatures for liquefaction, high-pressure environments and LNG’s low lubricity as a fluid all demand advanced engineering solutions. Innovations in materials and sealing technologies are helping overcome these hurdles to ensure safe and efficient operations.

Growth brings technical challenges that need to be addressed to ensure continued success

For example, cryogenic seals and materials that resist rapid gas decompression for high-pressure compressors in the liquefaction process are critical for safe and efficient operation, while products designed for the poor lubrication properties of low-specific-gravity fluids enable greater reliability in LNG applications. 

As LNG’s role in the global energy mix expands, collaboration and innovation will be important in navigating future challenges. By addressing these technical demands, the gas sector can secure its position as a cornerstone of the energy transition.

About Greene Tweed

Greene Tweed is a leading global manufacturer of high-performance thermoplastics, composites, seals, and engineered components. For 160 years, it has served clients in semiconductor, oil and gas, aerospace, defence, pharmaceutical and chemical processing, and other critical industries.

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