The US Energy Information Administration (EIA) has reported a 3.1% increase in global LNG trade in 2023, averaging 52.9 billion ft3/d. This marks a rise of 1.6 billion ft3/d from the previous year, according to a recent report by the International Group of Liquefied Natural Gas Importers (GIIGNL).
The growth in global LNG trade last year was driven by expanded export and import capabilities alongside rising natural gas demand.
Export capacity saw significant expansions in the US, Mozambique, Russia, Indonesia, Norway, and Oman. In the US, the Freeport LNG facility resumed operations in February 2023 after being offline since June 2022, reaching full production capacity by April. Meanwhile, new projects in Mozambique (Coral South Floating LNG) and Russia (Portovaya LNG) came online in 2022 and achieved full production in 2023. Indonesia’s Tangguh LNG export facility added a third train, while Norway and Oman boosted production efficiency in their existing LNG plants.
In 2023, the US became the world’s largest LNG exporter, with exports increasing by 12% compared to 2022. The top three global LNG exporters—US, Australia, and Qatar—accounted for 60% of all LNG exports. Algeria’s exports also grew by 0.4 billion ft3/d due to new natural gas sources. Norway and Australia increased exports through improved plant operations, and Indonesia expanded capacity at Tangguh LNG.
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LNG import capacity expanded mainly in Europe and Asia. Europe added new floating storage and regasification units and expanded existing terminals. In Asia, China, India, the Philippines, and Vietnam led new capacity expansions.
Asia remained the top region for LNG imports, with a 3.5% increase in 2023. China saw the largest increase globally at 12%, maintaining its position as the largest LNG importer since 2021. India’s imports rose by 11%, supported by new terminals and lower LNG prices. Thailand, Bangladesh, and Singapore also increased imports due to favorable pricing.
European LNG imports rose slightly by 1.4%. Germany, a new LNG importer, averaged 0.7 billion ft3/d. Imports also grew in countries like the Netherlands, Italy, and Finland that expanded their regasification capacity. However, the UK, France, and Spain saw a combined decline of 1.3 billion ft3/d, mainly due to reduced natural gas demand.
In Latin America, LNG imports rose notably in Colombia by 0.1 billion ft3/d. The country used LNG for power generation amidst a drought that reduced hydropower output. Brazil’s imports declined as hydropower generation increased. Puerto Rico also saw increased LNG imports.