BAKU, Azerbaijan, Feb.28. Despite rising by a mere 5.5% in volumetric terms, the value of global LNG trade doubled in 2022 to an all-time high of USD 450 billion, Trend reports with reference to the Global Gas Market Report of the International Energy Agency (IEA).
The report says that the global energy and gas crisis triggered by the war in Ukraine drove up spot gas prices and LNG import bills to record levels across key Asian and European markets.
"Gas and LNG producers’ record profits could support additional investment in reducing the emissions intensity of gas value chains, enhancing methane capture efforts and diversifying economic structures to adapt to the new global energy economy that is emerging. LNG played a critical role in mitigating the impact of Russia’s deep cuts in piped gas supply to the European Union and was instrumental in avoiding gas supply shortages in 2022.
The stiff competition for flexible LNG cargoes between Asia and Europe provided strong upward pressure on hub and LNG spot prices throughout the year. In Europe month-ahead prices on the TTF averaged over USD 40/MBtu in 2022, almost eight times their five-year average between 2016 and 2020. In Asia LNG spot prices followed suit, averaging at USD 34/MBtu over the year, more than five times their five-year average between 2016 and 2020. Consequently, the estimated value of LNG traded under spot mechanisms – more than doubled to over USD 230 billion. Heightened geopolitical uncertainty and tightening supply drove up oil prices to their highest level since 2013," said the IEA.