Global trade in liquefied natural gas continued to grow in 2023: US report

Washington: Liquefied natural gas (LNG) trade increased 3.1 per cent globally in 2023 to average 52.9 billion cubic feet per day (Bcf/d), an increase of 1.6 Bcf/d from 2022, according to a report from the International Group of Liquefied Natural Gas Importers (GIIGNL).

Expanded export and import capacity and increasing natural gas demand drove the growth in global LNG trade last year.

The report published by the US Energy Information Administration (EIA) says LNG export capacity expanded primarily in the United States, Mozambique, Russia, Indonesia, Norway, and Oman.

In the United States, Freeport LNG returned to service in February 2023 after being offline since June 2022, and it was operating at full production capacity by April. Developers in Mozambique and Russia commissioned new projects in 2022 — the 0.4-Bcf/d Coral South Floating LNG in Mozambique and the 0.2-Bcf/d Portovaya LNG in Russia — and these projects reached full production in 2023.

In Indonesia, the Tangguh LNG export facility added a third train. Norway and Oman increased LNG production capacity by optimizing operational efficiency of existing LNG plants.

In 2023, the United States became the world’s largest LNG exporter, with exports increasing by 12 per cent compared with 2022. Exports from the three largest global LNG exporters—the United States, Australia, and Qatar — accounted for 60 per cent of all LNG exports in 2023.

Algeria’s LNG exports increased 0.4 Bcf/d as additional natural gas feedstock became available from the newly commissioned production fields. Exports also increased from Norway and Australia mainly due to optimization of the export plants’ operational performance and from Indonesia after a capacity expansion at Tangguh LNG.

LNG import capacity was expanded primarily in Europe and Asia. In Europe, operators placed several new Floating Storage and Regasification Units in service and expanded regasification capacity at some existing terminals. In Asia, new capacity was added primarily in China, India, the Philippines, and Vietnam.

Asian countries continued to lead the growth in LNG imports globally, with imports increasing by 3.5 per cent (1.2 Bcf/d) in 2023. LNG imports increased by 12 per cent (1.0 Bcf/d) in China, the most of any country in the world, making China the world’s largest LNG importer for the second year since 2021.

LNG imports in India increased by 11 per cent (0.3 Bcf/d) as new regasification terminals were placed in service and LNG prices declined. Lower LNG prices also contributed to increased imports into Thailand (by 0.4 Bcf/d), Bangladesh (0.1 Bcf/d), and Singapore (by 0.1 Bcf/d).

LNG imports in Europe increased slightly by 1.4 per cent (0.2 Bcf/d). Imports into Germany — the newest LNG importer — averaged 0.7 Bcf/d. Imports also increased to countries that expanded regasification capacity, such as the Netherlands, Italy, and Finland. LNG imports to the United Kingdom, France, and Spain declined by a combined 1.3 Bcf/d, mainly because natural gas demand in these countries decreased.

In Latin America, LNG imports increased mainly in Colombia by 0.1 Bcf/d. Colombia experienced drought and used LNG for natural gas-fired electric power plants to offset lower hydropower generation. In Brazil, LNG imports declined by 0.2 Bcf/d because more electricity was generated by hydropower, reducing demand for natural gas-fired electricity generation in 2023. LNG imports into Puerto Rico also increased by 0.1 Bcf/d.