Global LNG Market in 2023 and Outlook for 2024

In 2023, the global LNG market experienced steady demand growth amid limited new capacity additions and lower spot prices compared to the historic levels recorded in 2022. Ship tracking data compiled by the EOA shows that global LNG demand hit an all-time high in 2023, reaching 401 million tons (mt), up from 390 mt in 2022, a 2.8% year-on-year growth (Figure 1).

Driven by Chinese demand, Asia remained the key destination for seaborne LNG cargoes in 2023, receiving more than 258 mt, or 64% of global demand. China last year overtook Japan as the world’s largest LNG importer with 13.7% jump in its imports to 72 mt, up from 62.4 mt in 2022. China’s gas demand growth in 2022 was influenced by weak demand in the industrial sector due to COVID control measures, and high spot LNG prices triggered by an unprecedented European appetite for the super-chilled fuel. Consequently, China’s LNG demand dropped by 20% to 63.4 mt in 2022, from 79.3 mt the prior year.