Global LNG trade increased by 6 percent to 385 million tonnes with economic activity picking up in several countries while supply constraints and rising demand caused significant volatility in prices as nations scrambled to secure LNG cargoes to meet gas demand for the past winter season.
Trading in the LNG sector was one of the issues covered by the 2022 edition of the “Global Gas Report” published by the International Gas Union on the occasion of the 28th IGU World Gas Conference in South Korea.
“Overall, LNG exports grew in 2021, with the US leading the way through its year-on-year increase of 23 million tonnes,” said the IGU in a report covering the past two years.
“This provided security of supply to some extent, especially in a tight market. US LNG recovered well from the cancellation of cargoes and reduced usage of liquefaction plants the previous year,” said the IGU report.
About 48 percent of US export volumes were delivered to Asia, driven by increasing demand in South Korea and China.
The IGU noted that Japan was the third-largest importer of US LNG in 2021, with the three countries accounting for over 36 percent of all US export volumes last year.
Brazil surge
LNG exports to Europe had also increased in March and April 2021, a year before the Ukraine events and after a cold winter had depleted the region’s natural gas in storage.
“Volumes decreased during the following months but increased again in the fourth quarter and peaked in December 2021, as Europe’s natural gas inventories remained low,” the IGU recalled.
US LNG exports to Brazil increased from 2.3MT in 2020 to 7MT in 2021 as an intense drought in the country limited hydro-electric power generation and led to more consumption of natural gas for power.
“LNG exports from Australia, Qatar and Russia remained stable from 2020 to 2021, while there was a decrease in volumes from Nigeria and from Trinidad & Tobago over the same period,” said the IGU report.
Pipeline exports
Pipeline natural gas export volumes also increased last year by 6 percent, mirroring the rebound of global economic activity.
“The US saw an 8 percent rise in pipeline exports to Mexico, while domestic consumption in the country remained low,” the report noted.
In the Asia Pacific region, net gas imports grew by 17 percent, with one-fifth of that incremental volume attributed to increased pipeline imports.
“This was particularly prominent in China, as import volumes rose due to weather-related factors and higher economic activity,” said the IGU.
“Russia’s pipeline export volumes increased by about 4 percent from 2020, with incremental volumes flowing to Germany, Italy and Turkey,” it added.
Europe’s pipeline imports rose by 0.5 percent in 2021, supported by an annual increase in volumes flowing from Algeria.
Russia’s pipeline deliveries to Europe declined further towards the end of the year, resulting in a tighter market and higher gas prices.
The IGU said that natural gas production levels in the Middle East increased, with Iran’s pipeline exports to Turkey and Israel’s pipeline exports to Egypt growing significantly.
