The global liquefied natural gas (LNG) trade saw a significant 3.1 per cent increase in 2023, reaching an average of 52.9 billion cubic feet per day. This growth was primarily driven by expanded export and import capacity, as well as increasing natural gas demand worldwide. The report from the International Group of Liquefied Natural Gas Importers (GIIGNL) and the US Energy Information Administration (EIA) highlighted that LNG export capacity expanded in countries such as the United States, Mozambique, Russia, Indonesia, Norway, and Oman.
The United States emerged as the world’s largest LNG exporter in 2023, with a 12 per cent increase in exports compared to the previous year. The three largest global LNG exporters — the United States, Australia, and Qatar — accounted for 60 per cent of all LNG exports in 2023. Various countries saw an increase in LNG exports, such as Algeria, Norway, and Australia, due to factors like optimization of export plants’ operational performance and capacity expansion at LNG export facilities.
On the import side, LNG import capacity expanded mainly in Europe and Asia. Asian countries continued to lead the growth in LNG imports globally, with imports increasing by 3.5 per cent in 2023. China, in particular, saw a significant 12 per cent increase in LNG imports, making it the world’s largest LNG importer for the second consecutive year. India also experienced an 11 per cent increase in LNG imports, driven by the commissioning of new regasification terminals and declining LNG prices. Lower prices also contributed to increased imports in countries like Thailand, Bangladesh, and Singapore.
In Europe, LNG imports saw a slight 1.4 per cent increase in 2023. Germany, the newest LNG importer in the region, averaged 0.7 Bcf/d in imports. Import volumes increased in countries like the Netherlands, Italy, and Finland, which expanded their regasification capacity. However, some countries like the United Kingdom, France, and Spain experienced a decline in LNG imports, mainly due to decreased natural gas demand. In Latin America, LNG imports increased in countries like Colombia and Puerto Rico, while Brazil saw a decline in imports as more electricity was generated using hydropower.
Looking ahead, the global LNG trade is expected to continue growing as countries expand their export and import capacity to meet the rising demand for natural gas. This presents opportunities for LNG producers and consumers to benefit from the flexibility, reliability, and environmental benefits that LNG offers as a clean and efficient energy source. With ongoing developments in the LNG market, stakeholders in the industry must stay informed and adapt to the changing dynamics to maximize the benefits of LNG trade for sustainable energy security and economic growth.
