U.S. leading the way in liquified natural gas exports

Global liquified natural gas trade hit a new record in 2023, with the U.S. leading the way, according to a report from the International Gas Union.

This growth was largely influenced by the return of Freeport LNG in the U.S. to full production and the ramping up of production at Calcasieu Pass, also in the U.S., the report said.

As a nation, the U.S. continues to be the largest producer, exporting over 84 million tons, an increase of 8.90 from 2022, according to the report.

At of the end of February 2024, 1,046 million tons a year of aspirational liquefaction capacity was in the pre-final investment decision stage, the report said. Most of this proposed capacity, totaling 643 MTPA, is located in North America, with the U.S. accounting for 363.9 million tons per year.

Aspirational capacity refers to the planned or proposed liquefaction capacity that companies or developers aim to achieve, but which has not yet reached the final investment decision stage.

However, not all pre-FID projects are expected to progress to sanction, and some may face delays due to regulatory impacts, the report said. For example, the U.S. Department of Energy's decision to pause LNG export approvals could affect the timeline for some projects.

The decision “has caused concern in the global LNG market over the role of US LNG to support the energy transition and energy security of customers in Europe and Asia,” the report said. “This could delay over 70 MTPA of new US LNG capacity until approval criteria is clarified.”

In other words, some planned LNG projects might not move forward.

Regionally, the second largest LNG trade flow was from North America to Europe, totaling 56.63 MT, driven by shipments from the US to the UK (8.81 MT), Spain (5.32 MT), and Germany (4.14 MT), according to the report.