The Largest Increase in Global LNG Exports in Three Years: 4% Increase

Global LNG Exports Reach Highest Level in Three Years

According to Kpler's ship tracking data, global LNG exports are expected to increase by 4% to 429 million tons in 2023 compared to last year. This increase draws attention as the largest annual increase since the 4.5% rise experienced in 2022. A significant portion of the increase is attributed to the accelerating production of projects like LNG Canada and Plaquemines in the USA.

US Leads in LNG Exports

This year, the USA consolidates its leadership position by becoming the first country to achieve over 100 million tons of LNG exports. The country aims to double its production within the next decade and increase its exports accordingly. This situation is expected to help lower natural gas prices in the Asian and European markets.

Market Impacts

Natural gas prices in Asia are approaching their lowest levels of the year, while futures prices in Europe have fallen by over 40% since the beginning of the year. Increased production may also support rising demand for ships carrying supercooled fuel. Last month, the costs of sending LNG from the Atlantic Ocean soared to nearly the highest levels in two years, due to increased supply and rising demand for tankers.

Global Import Trends

According to Kpler data, December LNG export figures may hit a record of 41 million tons. China and Japan continue to share the top spot as the world’s largest LNG buyers. However, China’s total imports for 2023 are projected to be about 15% lower compared to 2024. On the other hand, Egypt plans to increase LNG imports this year to over three times last year's figures, aiming for 8.9 million tons.

Future Predictions

According to Bloomberg Intelligence notes, global LNG trade volume is expected to increase by 5% to 8% in 2024 thanks to new supplies and low prices.