Global Gas & LNG: Upside Still to Come?

Research evidence excerpt

Global Gas & LNG: Upside Still to Come?

Global Idea

May 13, 2026 10:47 PM GMT

Morgan Stanley & Co. LLCMGlobal Gas & LNG Devin McDermott

Equity Analyst and Commodities Strategist

Upside Still to Come? Devin.McDermott@morganstanley.comMorgan Stanley & Co. International plc+ +1 212 761-1125

Martijn Rats, CFA

Seasonally soft demand has helped mask some of the physical EquityMartijn.Rats@morganstanley.comAnalyst and Commodities Strategist +44 20 7425-6618

tightness in LNG markets since the start of the Middle East

Morgan Stanley Asia (Singapore) Pte.+

conflict. With global storage below normal and consumption set Mayank Maheshwari

to trend higher again into the summer, we see upside risks to EquityMayank.Maheshwari@morganstanley.comAnalyst +65 6834-6719

2H26 prices even if flows through the Strait resume.

Morgan Stanley & Co. LLC

Joe Laetsch, CFA

Equity AnalystKey Takeaways

Joe.Laetsch@morganstanley.com +1 212 761-8804

After falling in mid-April after the ceasefire news, LNG prices have been fairly Jacqueline M Kenny

range bound for the last few weeks despite ~20% of supply still offline. Research Associate

Jacqueline.Kenny@morganstanley.com +1 212 761-2253

Seasonally weak demand has helped offset over half of the lost supply. Total

Morgan Stanley & Co. International plc+

Asia imports were up ~5% pre-conflict but are running -8% y/y over the last Charlotte Firkins

month. Commodities Strategist

Charlotte.Firkins@morganstanley.com +44 20 7425-3866

Outside of the US, global inventories are below normal (-17% y/y in EU). Refilling

should become more challenging as demand trends higher again into summer.

Helen Lin

US exports have fallen 9% in May vs April due to seasonal maintenance, but this Research Associate

Helen.Lin@morganstanley.com +1 212 761-0766