(www.MaritimeCyprus.com) LNG TRADE: Global liquefied natural gas (LNG) trade grew by 2.4% in 2024 to 411.24 million tonnes (MT), connecting 22 exporting markets with 48 importing markets. Despite muted spot demand in late 2024, LNG trade expanded due to increased liquefaction capacity and rising exports from several key producers, including the United States, Russia, Indonesia, and Australia.
Asia Pacific remained the largest exporting region with 138.91 MT in 2024, adding 4.10 MT over 2023. The Middle East continued as the second-largest exporting region with 94.25 MT, slipping by 0.44 MT from 2023. North America was the third-largest exporting region, growing by 4.11 MT to 88.64 MT, driven primarily by increased US output and the startup of the Plaquemines facility. Mexico and Congo joined the ranks of LNG exporters in 2024 with new floating LNG (FLNG) production. On the import side, Asia saw the largest increase in 2024, rising by 12.48 MT Year-on-Year (YOY) to 117.97 MT, followed by Asia Pacific with a 9.77 MT gain to 165.09 MT. The rise was driven by high gasfor-power demand due to heatwaves, alongside lower LNG prices in early 2024, encouraging more spot buying by price-sensitive markets.
China remained the largest importer, with imports rising by 7.45 MT to 78.64 MT. India imported 26.15 MT in 2024 versus 21.96 MT in 2023, a 4.19 MT (19.1%) increase. Japan and South Korea imported 67.72 MT and 47.01 MT, respectively, both showing moderate gains.
In contrast, European imports declined sharply, falling 21.22 MT yearon-year to 100.07 MT, driven by high storage levels at the start of the year, sluggish demand, and steady pipeline flows. The UK saw the largest individual decline, down 6.48 MT to 8.03 MT in 2024. Imports to France dropped by 3.75 MT, Spain imported 3.49 MT less, while the Netherlands took in 2.98 MT less LNG than in 2023.
PRICE TRENDS: Global LNG prices stabilised further in 2024, with Platts Japan/Korea Marker (JKM) – Asia’s key LNG benchmark – averaging $11.91 per million British thermal units (mmBtu), down 13.5% from 2023 and below long-term oil-linked contract prices for much of the year. Reduced price volatility, with JKM’s 30-day rolling volatility average falling to 45%, supported record spot trading activity and improved forward market confidence. Price levels were subdued in the first half of the year amid mild winter weather and high inventories but strengthened in the fourth quarter due to geopolitical tensions and tightening supply expectations.
Demand rebounded in Asia, with China and India posting strong YOY growth in spot LNG imports, driven by heatwaves, infrastructure expansions, and greater reliance on gas-for-power. Traditional North Asian buyers like Japan and South Korea showed mixed trends, with limited overall growth but increased activity from smaller players and traders. Southeast Asian markets also boosted spot procurement, with around two-thirds of spot trades linked to the JKM index. In contrast, European LNG imports declined to their lowest level since 2021 as high renewable output, strong pipeline supply, and narrower price differentials limited spot buying. However, flexibility improved, with spot and short-term imports rising to 50% of total volumes. The JKM–NWE (Northwest Europe) price spread narrowed to $1.15/ mmBtu, reflecting intensified inter-basin competition, while growing derivatives and physical trade volumes highlighted the continued evolution of LNG market structures.
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Source: IGU
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