EIA: US remains top exporter of LNG in 2023

Data from the US Energy Information Administration (EIA) pegged the nation’s liquefied natural gas exports at 11.9Bn cubic feet per day (Bcf/d) in 2023 – a 12% increase compared with 2022.

LNG exports from Australia and Qatar – the world’s two other largest LNG exporters – each ranged from 10.1 Bcf/d to 10.5 Bcf/d annually between 2020 and 2023, according to data from Cedigaz. Russia and Malaysia round out the top five averaging 4.2 Bcf/d and 3.5 Bcf/d respectively.

US LNG exports increased in the first half of 2023 after the Freeport terminal in Texas returned to service in February following an industrial accident in June 2022, which knocked it out of commission temporarily.

Freeport began full production by April, and powered by the demand for LNG in Europe, which remained the primary destination for US LNG exports, set monthly records late last year: 12.9 Bcf/d in November, followed by 13.6 Bcf/d in December.

EIA now estimates that utilisation of export capacity averaged 104% of nominal capacity and 86% of peak capacity across the seven US LNG terminals operating in 2023.

Europe, including Turkey, accounted for 66% (7.8 Bcf/d) of US exports, followed by Asia at 26% (3.1 Bcf/d) and Latin America and the Middle East with a combined 8% (0.9 Bcf/d).

As Europe’s LNG import capacity continued to expand, the EIA estimates it will increase by more than one-third between 2021 and 2024.

The Netherlands, France and the UK accounted for a combined 35% (4.2 Bcf/d) of all US LNG exports. Dutch exports increased with the expansion of the Gate LNG regasification terminal and the commissioning of two new floating storage and regasification units (FSRUs). The EIA expects supplies to Germany will continue to remain high for the foreseeable future with four terminals, three of which are FSRUs, expected to come online between 2024 and 2027.

Japan, China and India all increased LNG imports from the United States by a combined 0.6 Bcf/d, compared with 2022 while the Philippines and Vietnam began importing LNG in 2023.

However, readers should note the Biden Administration placed a temporary pause on future LNG export permits in late January. The move is believed to be a concession to anti-fossil fuel energy activists who make up a small but visible and vociferous pressure group within President Biden’s Democratic Party, ahead of elections in November. 

Nevertheless, US officials have said they are open to ending the pause on approvals to get a Ukraine aide package passed in Congress.