BAKU, Azerbaijan, Feb.28. In 2023 the volume of global LNG trade is set to increase by 4.3%, Trend reports with reference to the International Energy Agency (IEA).
"The expansion of LNG demand is fuelled by a continuing rise in European imports to an all-time high of 180 bcm (thanks in part to new import infrastructure) and by a modest recovery in Asia following the region’s demand decline in 2022. LNG export growth continues at around 4.3% thanks to the anticipated return of the 20 bcm Freeport terminal to full production in Q1 2023, despite a marked slowdown in new liquefaction capacity additions in 2023," reads the latest IEA report.
The report reveals that in 2022 global LNG trade expanded by 5.4%, a slightly lower growth rate than in 2021.
"LNG import growth in 2022 was led by Europe with a sharp 63% increase, compensating for a significant drop in pipeline gas imports from Russia. Meanwhile, demand in the Asia Pacific region was lower than expected and registered an 8% decline. China’s imports were down by 21% (the largest annual decline in both absolute and percentage terms since the start of LNG imports in 2006), due to slow economic growth and Covid-related disruptions. Japan was once again the world's largest LNG importer, despite a modest 3% drop in LNG inflows in 2022.
Korea imported the same amount of LNG in 2022 as in 2021. Conversely, price-sensitive South Asian importers saw sharp declines: India and Bangladesh both saw LNG imports decrease by 17%, while Pakistan was down by 18%, as high and volatile spot LNG prices supressed demand. Despite the high price environment, Malaysia (up 45%), Thailand (up 28%), Singapore (up 22%), Indonesia (up 6%) and Chinese Taipei (up 4%) saw growing LNG imports, fuelled by strong power demand and economic activity – and in some cases also by declining domestic and pipeline gas supply. LNG imports in Central and South America dropped significantly (down 38%), thanks to the recovery of hydroelectric reservoir levels after the historic drought of 2021. LNG imports into Brazil dropped by 72% compared with 2021."
