BAKU, Azerbaijan, October 16. Global LNG trade is expected to grow by 3 percent to 18 bcm in 2023, Trend reports.
According to the International Energy Agency (IEA), the US is set to play a significant role by contributing over half of this additional LNG supply, securing its position as the world's largest LNG exporter.
Furthermore, the agency anticipates an uptick in supply due to enhanced feed gas availability in Algeria, the commencement of Tangguh Train 3 operations in Indonesia, and the ongoing expansion of Coral South FLNG in Mozambique. The surge in demand will predominantly originate from the Asian market, with China expected to boost its LNG imports by 16 percent year-on-year, the IEA added.
While China's LNG imports are projected to fall short of the record levels observed in 2021, it is poised to regain its title as the world's leading LNG importer, the agency pointed out. Europe's LNG imports, on the other hand, are anticipated to remain close to last year's figures.
Analyzing the first three quarters of 2023, the IEA anticipates global LNG supply to have increased by 3 percent year-on-year, amounting to 11 bcm when measured on an import basis. This growth was primarily propelled by the US and Algeria, collectively accounting for 85 percent of the incremental global LNG supply. The Asia Pacific region and Europe were at the forefront of LNG demand growth, with a 2.7-percent and 2.5-percent increase in LNG inflows, respectively. North America played a pivotal role in boosting incremental LNG exports, with noteworthy contributions also coming from Algeria, Mozambique, and Norway.
From the perspective of demand, Europe's LNG imports demonstrated growth during the first half of 2023 but experienced a year-on-year decline in the third quarter, influenced by sustained reductions in gas demand and high storage levels. Net LNG imports in Europe grew by 2.7 percent year-on-year, equivalent to 3.2 bcm, in the first three quarters of 2023, primarily driven by increased LNG inflows to the Netherlands, Germany, and Italy.
LNG imports in the Asia Pacific region recorded a 2.6% year-on-year increase, equal to 6.3 bcm in absolute terms, during the first three quarters of 2023, primarily owing to China. After more than a year of year-on-year declines, China's net LNG imports began to recover in March 2023, surging by 13% year-on-year, or 7.8 bcm, for the first three quarters of 2023.