After a tumultuous five years marked by calls to bury the natural gas industry amid efforts to decarbonize the sector, along with wild price volatility that saw historic lows in 2020, record highs in 2022 and a plunge again this year, corporate leaders now see the potential for long-term prosperity.

This new confidence is driven by a forecasted rise in global energy demand ignited by the rapid expansion of energy-hungry data centers and AI technologies. The next five years will see a natural gas supply boom that should keep prices affordable for developing countries, thereby opening new markets that hitherto relied on cheaper coal power.

What a difference a year makes. In November 2023, the United Nations’ COP28 climate summit loudly announced what activists called the “beginning of the end of the fossil fuel era.” However, the natural gas industry’s buoyant future can easily be discerned in the more than 1,000 orders to build LNG maritime transport vessels.

The recent Gastech conference in Houston, held from September 17-20, radiated this optimism. Industry leaders reaffirmed the role of natural gas in the global energy mix, with a clear focus on expanding market share, particularly at coal’s expense.

However, the sector is not resistant to change. Many gas companies are exploring hydrogen and other alternative energy options to lower their carbon footprint.

All these developments will have a significant impact on Japan, the world’s second LNG buyer after China, and a nation that still relies on burning gas for over a third of its electricity.