Global liquefied natural gas (LNG) exports experienced their slowest growth since 2015, increasing by just 0.4% to 414 million tons in 2024, as per data from Kepler. Supply constraints, including delays in US projects and sanctions on Russia’s new facility, have kept the market tight and prices high, leaving Europe and Asia vulnerable to price spikes.
Key Developments
- Supply Constraints:
- The market remains finely balanced since the 2022 Ukraine invasion disrupted Russian pipeline gas flows to Europe.
- Limited new exports have exacerbated the situation, with LNG prices staying elevated due to insufficient supply.
- Regional Export Trends:
- The United States maintained its position as the world’s largest LNG exporter, shipping 87 million tons in 2024, consistent with the previous year.
- Delays in new US projects slowed growth, though progress is underway. Venture Global LNG’s Plaquemines plant began exporting, and Cheniere Energy’s Corpus Christi plant expanded production.
- Key Buyers:
- China retained its status as the largest LNG importer, buying 78 million tons in 2024, an 8.5% increase year-over-year but slightly below its 2021 peak of 80 million tons.
Future Outlook
Relief in the LNG market may emerge in 2025, driven by increased production from US projects and Canada’s entry into the market. However, the current tight supply-demand balance underscores the need for accelerated investments and the resolution of geopolitical disruptions to ensure market stability.
The continued dominance of the US as a top exporter and China as a leading importer reflects the enduring demand for LNG, but the supply limitations will likely remain a critical factor in determining market dynamics.
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Source: BNN Bloomberg
