In addition, winter temperatures, which were colder than in previous years, particularly in North America and Europe, further boosted consumption. In Asia, however, demand for natural gas slowed, reaching its lowest consumption level since 2022.

In China, weak demand, combined with a continued increase in domestic gas production and a rise in pipeline gas deliveries from Russia, led to a sharp decline in liquefied natural gas (LNG) imports, which fell by 14% compared to 2024.

On the production front, liquefaction capacity increased by 7% in 2025, with the United States accounting for the vast majority (nearly 90%). It is worth noting that final investment decisions (FIDs) for LNG liquefaction facilities remained very strong, with more than 90 bcm³ of liquefaction capacity approved in 2025 (see chart below). This was the second-largest year in terms of investment decisions in the LNG sector, after 2019. In this context, the United States made investment decisions for more than 80 bcm of LNG liquefaction capacity.

³Billion cubic meters, approximately 11 TWh

investment in more than 80 bcm of LNG liquefaction capacity

The sustained growth of LNG projects has been accompanied by an increase in contracting activity in this sector. Contracts for more than 130 bcm of LNG per year were signed in 2025, representing the largest volume contracted over the past decade.

Tighter supply fundamentals put upward pressure on spot LNG prices in Asia and on European hub prices during the first half of the year, before easing in the second half of 2025 as LNG supply availability improved.

In the United States, strong growth in demand has supported a recovery in prices from the extremely low levels of 2024. The correlation between Asian and European prices has reached a new all-time high, reflecting the increasing globalization of natural gas markets.

Spot Price of Natural Gas, 2024–2026

Demand and Production: Trends in Europe

Gas demand in Europe rose by 3% compared with the previous year. The most significant increase came from demand for electricity generation by gas-fired power plants (+11%), followed by local distribution, primarily for heating (+2%);
it should be noted that demand from industrial customers declined (-3%).
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Once again, this year has confirmed the major role of gas infrastructure in the energy transition and the future of energy, particularly in coping with weather-related uncertainties during cold spells, but also as a source of flexibility that helps offset the high variability of renewable electricity generation from solar panels and wind turbines, thanks to gas-fired power plants.

It is worth noting that demand for natural gas surged by more than 70% between 14 and 21 November 2025. This dramatic increase was primarily due to an intense and early cold snap that hit Europe during that period, causing a sharp rise in heating needs. At the same time, the low level of wind power generation observed during this period forced grid operators to rely more heavily on gas-fired power plants to compensate for the shortage of renewable energy and stabilize the electricity mix.
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As for the source of gas supplied to Europe, 39% comes from LNG imports (60% of which is from the United States), 30% from Norway, while supplies from Russia now account for only 4%.

SOURCES OF NATURAL GAS FOR EUROPE'S SUPPLY, 2025

Seasonal natural gas storage, a cornerstone of Europe’s supply security, played a vital role in 2025. Storage levels stood at 62% at the end of 2025, down 10.2% from the end of 2024

Despite slightly above-average injections during the filling period, peak storage levels reached 82.8% in early November 2025, 12.4% below the 2024 level, but more importantly, below the 90% storage target set by the European Union before the start of winter.

It should be noted that water withdrawals in early winter 2025 were generally in line with the five-year average and remained slightly lower than those recorded during the same period in 2024.

Level of Natural Gas Storage in Europe

Finally, in order to eliminate all natural gas imports from Russia, the European Parliament approved, at the end of 2025, a new regulation providing for a phased-out ban. This ban will initially apply to short-term LNG contracts, then to contracts for gas transported via pipeline, with a deadline set for 30 September 2027.

In terms of volumes of LNG and pipeline gas, approximately 30 bcm from other supply sources will therefore need to be contracted to meet Europe’s overall demand by the end of September 2027.

SWISS GAS MARKET

NEW PROJECT BY LapGaz

A revised draft of the Gas Supply Act (LApGaz) was submitted for public comment by the Federal Council during the last quarter of 2025. Compared to the first draft submitted for public comment in 2019, significant changes have been made.

The new proposal calls for the full liberalization of the gas market, including the creation of an independent market area manager funded by the transmission companies; however, these companies will not be represented on the board of directors.

A new “entry-exit” model will provide access to this segment of the Swiss market; it will incorporate the Transitgas pipeline for capacity destined for Switzerland, as well as all transit capacity. Liberalization of metering and billing will round out this new model.

No provisions have been made to encourage and support the development of renewable gas. In this context, it is important to note that Swiss gas distributors have voluntarily incorporated more than 3,200 GWh of renewable gas into their mix in 2024, without any subsidies. However, under the new proposal, existing biomethane production facilities will face financial penalties for feeding their renewable gas into the networks.

Ultimately, the principle of subsidiarity, enshrined in the Swiss Federal Constitution, is clearly set aside in this bill, which instead focuses on regulatory mechanisms, notably through the new Federal Energy Commission (EnCom) and the Federal Council. This provision does not appear to be the most efficient approach, given that the Swiss gas industry has benefited from expertise and know-how in this field for more than 50 years.

Following the consultation, initial reactions to this new bill were largely negative among the various stakeholders. The Swiss gas industry as a whole rejected the bill, citing, in particular, a tendency toward overregulation and a lack of a long-term vision for renewable gas and for the country’s gas infrastructure.

Security of Gas Supply in Switzerland

Given that the gas market is expected to remain somewhat tight in 2025, the Federal Council has decided to extend the ordinance governing the gas sector in order to ensure the country’s gas supply through the end of 2030. This ordinance contributed, in particular, to the establishment of the Crisis Response Organization (OIC Gaz) by the Swiss Gas Industry Association (ASIG), as well as to the development of a monitoring system for the gas sector by the Energy Division of the Federal Office for National Economic Supply (AEP).

The Federal Council has also decided to extend the ordinance on ensuring supply capacity in the event of a severe natural gas shortage through 30 September 2028. Among other things, this ordinance requires regional gas network operators in Switzerland to maintain winter gas reserves equivalent to 15% of average annual natural gas consumption. This measure thus enables Switzerland to continue to play its part in filling Europe’s gas storage facilities.

With the aim of making the AEP better equipped to meet current challenges and strengthening it in preparation for future crises, the Federal Council approved the draft revision of the National Supply Act (LAP) in November 2025. However, the bill must still be considered by the Federal Assembly in 2026.

The extension of these two ordinances, along with the revision of the National Supply Act, will thus help strengthen Switzerland’s gas supply security in a geopolitical context that remains uncertain.

Cybersecurity and Technological Security

In parallel with the planned implementation through 2027 of ICT (Information and Communication Technology) standards applicable to critical infrastructure, such as that operated by Gaznat, the Federal Council has decided to enact, effective April 2025, a requirement to report any cyberattacks against such infrastructure to the Federal Office for Cybersecurity (FOCS).

Energy Storage

Regarding the winter reserve for electricity generation, the Federal Council has extended the ordinance through the end of 2030, thereby allowing the contracts forexisting reserve power plants, notably those in Monthey and Cornaux, to be renewed until the provisions on thermal reserves contained in the Electricity Supply Act (LApEI) come into force. This decision demonstrates the essential role played by gas infrastructure, both in terms of grid convergence and within the context of the energy transition.

One of the key challenges of the Confederation’s Energy Strategy 2050 is undoubtedly that of energy storage, in all its forms and for time scales ranging from minutes to several months.
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To this end, the Swiss Confederation has established a working group, in which Gaznat is a key participant, to develop this energy storage strategy. Originally scheduled for late 2025, its publication is now planned for late 2026. Gaznat remains convinced that its LRC (Lined Rock Cavern) rock cavern gas storage project would help address the challenges posed by these energy storage issues within the country.