The global liquefied natural gas (LNG) market has a new found, but fragile equilibrium, following two years of volatility. Photo: Bloomberg
The global liquefied natural gas (LNG) market has a new found, but fragile equilibrium, following two years of volatility, due to lack of spare supply in the near-term, the International Gas Union (IGU) said in a report on Wednesday.
Global LNG trade reached a record level of 401.42 million metric tonnes in 2023, growing by 2.1 per cent or 8.4 million tonnes from the previous year, supported by high spot purchases due to gradual decline in prices.
However, the pace of growth was lower than the 5.6 per cent seen in 2022, as limited supply remains the primary growth- limiting factor, IGU said in its World LNG Report.
Why it is important
LNG, widely seen as a transition fuel on the path to net-zero emissions, is playing a critical role to help countries, especially in Asia to achieve their energy transition goals.
European Union nations have raced to replace Russian fuel following Moscow’s invasion of Ukraine in 2022, and LNG imports have been instrumental in replacing a substantial share of Russian gas pipeline supplies.
The IGU represents the global gas industry with more than 150 members in over 80 countries, covering over 90 per cent of the global gas market.
By the numbers
– Global LNG trade connected 20 exporting markets with 51 importing markets in 2023.
– Asia saw the biggest change in net imports, with an increase of 10.49 million tonnes, as lower prices spurred spot purchases.
– China was the world’s top LNG importer of LNG with 71.21 million tonnes of imports.
– European imports remained steady, as a mild winter helped keep inventories at strong levels.
– Germany imported substantial volumes of LNG for the first time in 2023, estimated at slightly over 5 million tonnes, compared with 80,000 tonnes in 2022.
– The United States remained the world’s top LNG exported in 2023, with total exports of 84.5 million tonnes, an increase of 8.9 million from the previous year.
– Australia came in second place with exports totalling 79.6 million tonnes, followed by Qatar and Russia exporting 78.2 million and 31.4 million respectively.
– Asia and Asia Pacific regions remain highly dependent on long-term imports at 68.9 per cent and 69.5 per cent respectively.
– Meanwhile, Europe’s long-term purchases reached 46.4 per cent and its spot purchases were 48.4 per cent.
Key quotes
“LNG market conditions remain tight, despite lower prices.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jun 26 2024 | 12:40 PM IST
