Qatar Minister Flags Potential LNG Shortages by 2035 Amid AI Demand Surge

• AI data centers are accelerating natural gas demand as a bridge fuel for reliable power generation.

• Global LNG trade is projected to rise from 400 mtpa today to 600-700 mtpa by 2035, per industry forecasts.

• Underinvestment risks shortages, with new capacity needed urgently to meet the 50% growth in exports by 2030, including major expansions in the US and Qatar.

Discover how AI’s energy hunger could trigger LNG shortages by 2035, raising natural gas prices amid underinvestment. Qatar’s minister highlights risks—stay informed on global energy shifts today.

What is causing the predicted LNG supply issues by 2035?

LNG supply issues by 2035 stem primarily from the explosive growth in artificial intelligence infrastructure and chronic underinvestment in new natural gas production capacity. Qatar’s Minister of State for Energy Affairs, Saad Sherida al-Kaabi, highlighted these concerns during a speech at the Doha Forum, noting that AI data centers are becoming massive energy consumers, pushing demand for natural gas as a stable power source. Without accelerated investments in the coming years, shortages could lead to significant price spikes, affecting global energy security.

How is AI driving up natural gas demand?

The rapid expansion of AI data centers is transforming global energy landscapes by creating unprecedented electricity needs. These facilities, often described as energy black holes, require constant, reliable power, making natural gas an ideal bridge fuel for generation due to its efficiency and lower emissions compared to coal. Al-Kaabi pointed out that every country he consults with reports 10% to 20% of their electricity demand originating from AI applications. This surge is forecasted to elevate LNG demand to 600-700 million tonnes per annum by 2035, a substantial increase from the current 400 mtpa. Supporting data from energy analyses indicate that data centers alone could account for a significant portion of this growth, with global electricity consumption from AI potentially doubling in the next decade. Experts emphasize that without proactive measures, this demand will strain existing supplies, underscoring the need for balanced investment strategies.

Frequently Asked Questions

What factors are leading to potential LNG shortages in 2035?

Key factors include the booming energy requirements of AI data centers and insufficient investments in new LNG production facilities. Qatar’s energy minister, Saad Sherida al-Kaabi, warned at the Doha Forum that without investments over the next five to six years, supply gaps could emerge by 2035, driving up prices and challenging energy affordability worldwide.

Will natural gas prices rise due to AI energy demands?

Yes, natural gas prices are likely to increase as AI’s power needs boost demand for LNG as a reliable fuel source. Al-Kaabi noted potential spikes from underinvestment, while the International Energy Agency forecasts LNG trade growth to 880 billion cubic meters by 2035, pressuring markets and highlighting the urgency for expanded capacity.

Key Takeaways

• AI’s energy impact: Data centers are fueling a 50-75% rise in LNG demand by 2035, positioning natural gas as essential for meeting this surge.
• Investment urgency: Global underinvestment risks shortages; new projects in the US and Qatar aim to add 300 billion cubic meters of capacity by 2030.
• Price and policy implications: Expect higher LNG prices without action; countries may need to adjust regulations, like methane emissions rules, to secure supplies.

Conclusion

In summary, the predicted LNG supply issues by 2035 arise from AI-driven energy demands and lagging investments in natural gas infrastructure, as articulated by Qatar’s Saad Sherida al-Kaabi at the Doha Forum. Echoed by the International Energy Agency’s projections of LNG trade expanding to over 1,000 billion cubic meters by 2050, these trends signal a pivotal moment for global energy strategies. Qatar remains committed to expansions in its North Field and cleaner technologies like carbon capture, offering a pathway forward—policymakers and investors must act decisively to avert disruptions and ensure sustainable energy access in an AI-powered future.

Saad Sherida al-Kaabi, Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy, expressed his concerns about the potential future shortages in liquefied natural gas (LNG) and natural gas supplies while giving a speech at the Doha Forum.

While he did not outrightly claim that AI alone would use up all the world’s LNG by 2035, he did link the possibility to two factors, which include the surging energy demand from artificial intelligence (AI) data centers and chronic underinvestment in new production capacity.

Qatar’s energy minister has expressed worry that a lack of investment and the surge in energy use from AI will create a shortage of LNG and natural gas supplies beyond 2035.

This is because of the rapid expansion of AI infrastructure and accelerated global electricity needs, especially from data centers that have proven themselves to be energy blackholes.

This boosts demand for natural gas as a reliable “bridge fuel” for generation, which is why al-Kaabi forecasted LNG demand could reach 600–700 million tonnes per annum (mtpa) by 2035, up from around 400 mtpa today, with much of it driven by growth in energy-intensive AI.

“There’s underinvestment, and if that doesn’t happen in the next five to six years, we will have issues in 2035,” al-Kaabi said at the Doha Forum in the Qatari capital on Saturday, while expressing concern that a lack of investment will trigger a spike in LNG and natural gas prices. “Every country we talk to has 10% to 20% of their demand coming from AI.”

With the capacity in the oil market, he sees the global economic slowdown as the biggest problem for crude prices.

An oil price of between $70-$80 a barrel is ideal in order to fund required infrastructure investments, al-Kaabi said.

In the meantime, Qatar, which is the world’s top LNG exporter, will continue to aggressively expand its North Field to add capacity so it can deal with increasing demand. However, al-Kaabi has warned that global hesitation, sponsored by energy transition uncertainties and regulatory hurdles, might not be able to keep pace with demand.

Despite his concerns, al-Kaabi is still very optimistic about LNG being a cleaner alternative to coal and has noted Qatar’s continued commitment to carbon capture and sequestration.

The International Energy Agency (IEA) published its World Energy Outlook in November, in which it echoed al-Kaabi’s sentiments regarding LNG.

In the official document, the IEA projected global LNG trade to grow from 560 billion cubic meters (bcm) in 2024 to 880 bcm by 2035 and to 1,020 billion cubic meters by 2050, due to rising power sector demand driven by data center and AI growth.

It highlighted how new liquefied natural gas (LNG) projects surged in 2025, with about 300 billion cubic meters of new annual LNG export capacity expected to start operation by 2030 — a 50% increase. About half of that new capacity is being built in the United States, and an additional 20% in Qatar.

In the Current Policy Scenario, most of the new LNG is expected to go to China and Europe, which may mean that the European Union will have to get rid of its methane emissions regulation if it wants to keep the lights of businesses on and its citizens warm.