According to data from CEDIGAZ, the year 2022 witnessed a remarkable surge in the global trade of liquefied natural gas (LNG), reaching a record high of an average of 51.7 billion cubic feet per day (Bcf/d).
This represents a 5% increase compared to the previous year, 2021.
The growth in global LNG trade can be attributed to the escalating demand for LNG in Europe. This demand surge led to the displacement of pipeline natural gas imports from Russia, as LNG emerged as a preferred alternative.
The combined LNG exports from Malaysia, Norway (following the resumption of operations at Hammerfest LNG in May), Trinidad and Tobago, Russia, Oman, and Equatorial Guinea witnessed a notable increase of 1.3 Bcf/d.
Nigeria and Algeria witnessed a decline in gas exports.
However, there was a decrease in LNG exports from Algeria and Nigeria, amounting to a combined reduction of 0.5 Bcf/d. Both countries faced ongoing challenges with domestic natural gas production, which serves as a crucial raw material for their LNG export facilities.
The global landscape of LNG imports saw significant shifts in 2022, with Europe emerging as the leading region in terms of growth. In particular, Europe, including Türkiye, experienced a remarkable increase of 65% (6.5 Bcf/d) in LNG imports compared to 2021.
On the other hand, Asia witnessed a decline of 9% (3.2 Bcf/d), while Latin America experienced a substantial decrease of 34% (0.8 Bcf/d) in LNG imports compared to the previous year.
Europe’s LNG exports
Within the EU-27 countries and the UK, LNG imports skyrocketed by 73% (6.3 Bcf/d) in 2022, surpassing imports through pipelines from Russia.
Notably, five countries—France, the UK, Spain, the Netherlands, and Belgium—contributed significantly to this surge, accounting for 85% of the overall increase with a combined rise of 5.4 Bcf/d.
Japan reclaims its title as the largest LNG importer in Asia
For half a century, Japan held the position of the top LNG importer until China surpassed it in 2021. However, in 2022, Japan reclaimed its status as the leading importer of LNG.
China’s decline in LNG imports can be attributed to its zero-COVID policies, increased reliance on pipeline imports from Russia, and higher utilization of coal.
Brazil’s drop in LNG imports
Turning to Latin America, Brazil witnessed the most substantial drop in LNG imports, plummeting by 70% (0.6 Bcf/d).
This decline was primarily driven by the increased availability of electricity generated from hydropower, which reduced the demand for natural gas-fired electricity generation in 2022 compared to 2021.
