Global trade in liquefied natural gas (LNG) set another record in 2019, reaching 46.7 billion cubic feet per day (Bcf/d), according to the recently released The LNG Industry GIIGNL Annual Report 2020 by the International Group of Liquefied Natural Gas Importers (GIIGNL). Total trade increased by 5.4 Bcf/d (13%) compared with 2018, the largest annual increase on record. Spot and short-term trade increased by 2.6 Bcf/d (20%) in 2019 over the previous year and accounted for 34% of the total global LNG trade.
In the past five years, global LNG trade has increased by 45% (15.2 Bcf/d), led primarily by capacity additions in Australia, the United States, and Russia, which combined accounted for more than 90% of the global growth in liquefaction capacity during this period. In 2019, Australia completed its massive capacity buildout program and became the world’s largest LNG exporter for several months, overtaking Qatar. The United States continued commissioning new liquefaction trains in 2019, including Train 2 at Corpus Christi, the first two trains at Cameron LNG and Freeport LNG, and the first five small modular liquefaction units at Elba Island, adding a combined 3.3 Bcf/d of new liquefaction capacity. Russia continued to ramp up production at Yamal LNG and commissioned a small-scale liquefaction facility, Vysotsk LNG (0.09 Bcf/d capacity).
Asian countries continued to account for the largest share of global LNG imports (69%), increasing imports by a combined 1 Bcf/d in 2019 compared to 2018. All countries in Asia increased LNG imports except Japan, South Korea, and Taiwan, where milder winter weather, competition from coal-fired generation, and the restart of several nuclear reactors in Japan led to a decline in LNG imports by a combined 1.3 Bcf/d. China, after becoming the world’s second-largest LNG importer in 2017 and world’s largest natural gas importer in 2018, continued to implement government-supported coal-to-natural gas switching policies to reduce air pollution, which led to an increase in LNG imports by 1 Bcf/d in 2019 compared to 2018.
LNG imports in Europe almost doubled in 2019 compared to 2018, reaching 11.3 Bcf/d, an increase of 4.9 Bcf/d (76%)—the largest volume of European LNG imports on record. All LNG-importing countries in Europe increased their volumes, led by the United Kingdom (UK), France, Spain, and Italy, which increased imports by 1.1 Bcf/d, 1.0 Bcf/d, 0.7 Bcf/d, and 0.5 Bcf/d, respectively. Competitive LNG prices, strong demand growth in the power generation sector, and continuous decline in natural gas production in the UK and the Netherlands led to larger volumes of LNG imports in Europe year on year.
Spot and short-term trade (defined as trade under contracts with a duration of 4 years or less) reached 15.7 Bcf/d, an increase of 2.6 Bcf/d (20%) compared to the previous year. The largest increase in spot trade was in exports from the United States, the United Arab Emirates, and Australia. Qatar, one of the largest exporters in the global spot market, reduced spot exports by 50% in 2019.
