File photo used for representation only
Doha, Qatar: Artificial intelligence is far more than advanced code in the cloud. The ability to process those advanced responses like image and video generation, requires enormous amounts of electricity.
That power must come from somewhere; coal is out of the question for environmental concerns and renewables cannot meet the insatiable demand. Enter the new energy cycle.
As the number of data centers continues to grow and energy demand surges, nations and power companies are scrambling for clean and efficient sources of energy. Interestingly, it turns out, liquefied natural gas (LNG) may be that solution.
LNG (natural gas chilled to extreme temperatures) is transported aboard specialized tankers and has quietly become the backbone of global energy security.
Large shipping tankers connect producers in the United States, Qatar, and Australia with consumers worldwide.
That may sound inefficient, but converting natural gas into LNG increases energy density by 600 times — meaning a standard five-gallon bucket of gas is reduced to the size of a ping pong ball. This creates energy-dense, easily transportable energy that is rapidly becoming a ‘transition fuel’ as the world pivots away from coal. Behind the scenes, the AI revolution will rely heavily on the maritime industry.
Yet despite this growing appetite, investment in new LNG supply and infrastructure has fallen dangerously behind demand.
Qatar’s energy minister, Saad Sherida al-Kaabi, recently issued a stark warning, stating that global LNG investment is critically low, and unless that changes, the world could face a 50 to 75 percent gas shortfall by 2035. Al-Kaabi projects that global LNG demand will surge to 700 million tons per year over the next decade. He added that in every country, “10% to 20% of demand comes from artificial intelligence." The result is a looming gap between how much gas the world will need and how much it is prepared to build.
While energy density makes for easily justifiable operating expenses, LNG infrastructure gaps may impact both tech and energy markets, and also maritime trade. LNG is among the most capex-heavy segments of shipping. A single LNG carrier costs hundreds of millions of dollars. Upstream production and export terminals require long-term confidence from financiers to secure capital. If policy uncertainty discourages financial commitments, the ripple effects are felt far and wide across global trade routes.
Reassuringly, the EU agreed to significantly cut back restrictive and onerous due diligence and sustainability measures that would have likely curtailed its surging LNG operations after the breakout of the Ukraine War, a big win for LNG and its traders.
Furthermore, the private sector continues to push forward. Glencore, long known for metals and bulk commodities, has expanded aggressively into LNG trading, securing long-term supply contracts and aligning itself with new U.S. export projects.
The firm’s offtake agreement for American LNG stretches 20 years into the future, signaling confidence that LNG will remain essential well into the AI era.
Italy’s energy powerhouse ENI has taken a similar approach. The company has been rapidly expanding its LNG footprint across Africa, the United States, and Asia, signing major deals in various regions.
ENI’s operations span everything from floating LNG projects off the coast of Africa to long-term contracts that move gas by tanker into European and Mediterranean ports.
The strategy reflects ENI’s belief that LNG will remain a cornerstone of energy security as electricity demand accelerates. “We have moved from Russian gas coming from pipelines to gas coming on ships.
We currently don't have enough LNG terminals... we would need four additional terminals [in Italy],” ENI CEO Claudio Descalzi said.
BGN Group, a fast-growing energy trader with roots in liquefied petroleum gas (LPG), exemplifies traders’ and nations’ growing appetite for LNG. BGN recently announced plans to expand into LNG on a global scale, investing not only in contracts but also in upstream infrastructure like vessels, terminals, and pipelines.
An executive summarized the ambition succinctly: to be present “from the Atlantic basin to Asia Pacific.” From a maritime perspective, this is highly suggestive of a future where traders have stakes in upstream production just as they have in freight and logistics. This expansion of operations by traders, exemplified by BGN, offers reassurance to AI players who are anxiously navigating the energy bottleneck.
According to the IEA, global LNG export capacity is set to expand by roughly 300 billion cubic meters annually. Much of this supply will come from the United States and Qatar, reshaping shipping routes and trade flows. The Atlantic Basin will continue to play a larger role, with U.S. cargoes feeding growing markets, especially in Asia and Europe. For shipping operators, this obviously presents a great opportunity, but also a risk.
The AI revolution magnifies these dynamics. Data centers need a reliable energy source that’s secured by a strong and efficient logistical network. When the grid is strained or disrupted, natural gas can be there to plug the gap. LNG cargoes, which can be rerouted if necessary, provide that flexibility. Maritime LNG transport effectively serves as a floating reserve for global power—a role that will only grow as AI continues to drive electricity demand higher.
Critics argue that expanding LNG infrastructure risks locking in fossil fuels for the foreseeable future while ignoring decarbonization goals. The reality, however, is that LNG has already contributed to cleaner energy generation. Natural gas has replaced coal in many markets, immediately reducing emissions in those areas. The maritime LNG sector itself is also evolving, with an increasingly more ammonia-powered fleet being implemented as a pathway toward lower-carbon shipping. The bottom line, though, is that the future of the tech economy simply depends on sufficient, reliable power. Without it, the AI boom is bound to stall.
Underinvestment in LNG would carry its own environmental and economic costs. A gas shortage would not eliminate demand but rather raise prices, increase instability, and potentially push some regions back toward higher-emission fuels. And for tech-driven economies, the repercussions could be catastrophic as innovation could hit a roadblock.
The AI revolution is reshaping how the world works and manages daily tasks. But beneath the software lies an unexpected component in the form of maritime operations. LNG, and the supply chains that deliver it, have become one of the quiet enablers of this transformation. Ships may seem far removed from the tech environment, but they are now part of the same system. The future may be digital, but the fuel that powers it is very much physical and is moving across the oceans..
