Director of Global Gas and LNG Research at the Rapidan Energy Group, highlighted the United States as the standout contributor to global LNG supply growth in 2023.
The United States set monthly and annual records for liquefied natural gas (LNG) exports in December, positioning itself to potentially outpace long-standing leaders Qatar and Australia to become the world’s largest LNG exporter in 2023. Tanker tracking data revealed that U.S. LNG exports reached unprecedented levels, hitting 8.6 million metric tons in December alone.
Alex Munton, Director of Global Gas and LNG Research at the Rapidan Energy Group, highlighted the United States as the standout contributor to global LNG supply growth in 2023. Munton attributed the record production to two key factors: the full return of Freeport LNG to service, adding 6 million metric tons, and the annual output of Venture Global LNG’s Calcasieu Pass facility, contributing an additional 3 million metric tons compared to 2022.
The U.S. gas exports for the entire year surged by 14.7%, reaching a total of 88.9 million metric tons. This substantial increase was primarily fueled by the complete recovery of the Freeport LNG plant, which had faced a setback due to a fire in 2022, and efficiency improvements across other facilities.
Europe emerged as the primary destination for U.S. LNG exports in December, accounting for 61% of the total shipments at 5.43 million metric tons. However, this marked a decline from November when 68% of U.S. LNG exports were directed towards Europe. Analysts attributed this month-over-month drop to milder temperatures in Europe and higher storage levels, with gas storage in the region reaching about 97% of capacity at the beginning of December.
Asia secured its position as the second-largest export market for U.S. LNG in December, receiving 2.29 million metric tons, representing 26.6% of total exports—an increase from 18.5% in November. Meanwhile, U.S. LNG exports to Latin America accounted for just under 6% of the total, totaling half a million metric tons.
Looking ahead, natural gas flows to the seven major U.S. LNG export plants have continued to climb, averaging 14.9 billion cubic feet per day (bcfd) in January, surpassing the previous monthly record of 14.7 bcfd in December. This significant uptick in exports further solidifies the United States’ position as a key player in the global LNG market.
In terms of pricing, U.S. natural gas was trading at $2.55 per million British thermal units (mmBtu) at the Henry Hub benchmark in Louisiana. In Europe, the Dutch Title Transfer Facility (TTF) benchmark recorded $9.81 per mmBtu, while in Asia, the Japan Korea Marker (JKM) stood at $11.52 per mmBtu.
With these remarkable achievements and the ongoing momentum in U.S. LNG exports, industry analysts anticipate that the United States is well-positioned to dethrone Qatar and Australia, establishing itself as the world’s leading LNG exporter in the coming year.