The LNG lifeline Will cheaper global gas resuscitate European industry? in Oil & Companies News 23/01/2026 Recent years have taken a brutal toll on Europe’s industrial producers, as a combination of record energy prices, supply-chain disruptions and robust decarbonisation targets have eroded their global competitiveness. Faced with the spectre of ever-greater deindustrialisation, European governments have responded with policy measures, albeit with mixed success. Rather than political intervention, however, it is the end of those high energy prices that may ultimately provide the greatest relief for Europe’s industrial sectors. Liquefied natural gas (LNG) suppliers, particularly in the US and Qatar, have responded to high gas prices by investing massively in new supply. Consequently, traded gas prices in Europe are set to tumble in the coming years as a new wave of LNG supply hits the market. With energy costs a key factor in Europe’s economic malaise, its industrial producers could be the greatest beneficiaries of lower gas and electricity prices. European industrial natural gas and power demand have declined by 21% and 4%, respectively, since 2021, sparked by soaring prices after Russia’s invasion of Ukraine. Though energy prices have come down from their 2022 peak, average European industrial electricity prices remain at a significant premium to those in China and the US, while natural gas prices are several times higher than in the US. Desperate to reverse the European Union’s (EU) industrial decline, the European Commission published ‘The Future of European Competitiveness’ in September 2024. Led by former European Central Bank chief Mario Draghi, the report gives energy centre stage. Recognising the detrimental impact of high energy prices on the bloc’s industrial competitiveness, it details policy aims of reducing prices through deregulation, infrastructure investment and new energy price formulas. However, other forces are at play besides the consequences of lower energy prices on Europe’s industrial producers. The Draghi report’s goals of boosting European industrial competitiveness are set against the backdrop of the EU’s unswerving commitment to driving down emissions. This will require a delicate balancing act: if emissions reduction remains the EU’s guiding principle, then reviving industrial growth becomes even more difficult. Source: Wood Mackenzie 2026-01-23 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share