SUBSCRIBE
PROFILE

The LNG Market under Tension

Already under pressure, the LNG market is expected to be tighter during 2023 according to the IEA president.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90$/month

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99$/year

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Sign up for free to unlock this article

The LNG market is under pressure. According to the IEA, the situation is expected to continue for the year 2023. According to Fatih Birol, the increased demand for LNG in China and India would explain this trend.

Fatih Birol announced a tightening of the LNG market in a statement to the LNG Producer-Consumer in Japan. The IEA president expects market tension to increase as a result of rising natural gas imports from China and India.

A European LNG market already under pressure

The IEA chief’s announcement comes against the backdrop of a sharp contraction in the European LNG market. Gas prices have already reached record levels this year due to the Russian-Ukrainian conflict. In fact, reductions in Russian gas flows have put considerable weight on the European market.

High wholesale gas prices in Europe have fueled a flood of LNG cargoes and volumes comparable to the largest Asian importers. According to F. Birol, the EU would have benefited from a substantial supply of LNG this year with imports up by 60%.

The slowdown of the Chinese economy

These record imports into Europe have been possible this year because of the Chinese economic slowdown. The president of the IEA states on this subject:

“One of the reasons Europe has been able to import so much LNG is because of China’s slow economic growth. If China’s economy recovers, it will be difficult for Europe to import so much natural gas.”

Chinese LNG imports are expected to experience their first major downturn this year. High prices and low production due to COVID-19 resulted in a contraction in natural gas demand. The leader in LNG imports last year gave way to Japan in early 2022.

The solution of restarting Japanese nuclear power plants

Fatih Birol said that the restart of nuclear power plants in Japan would increase the availability of natural gas. This would ensure more favorable conditions for European LNG imports as winter approaches. The official mentioned this topic without specifying a deadline at the conference.

According to him, Japanese nuclear power could release some 10 billion cubic meters of LNG.

  • Popular on energynews.pro
Orazul Energy launches cash tender offer for its 2027 notes
Petrobras takes 27.5% stake in Block 4 offshore São Tomé with Shell and Galp
Italy could unlock €16bn in hydropower through new concession model
Sub-Saharan Africa LNG exports expected to triple by 2034
Westinghouse and EDF reactors deemed viable for Slovenia’s JEK2 nuclear project
Finland criticises Hungary and Slovakia over Russian oil purchases
Finnish President Alexander Stubb denounced fossil fuel imports from Russia by Hungary and Slovakia as the EU prepares its 19th sanctions package against Moscow.
JERA targets 20-year contract for Alaskan LNG with Glenfarne
Japanese giant JERA has signed a letter of intent to purchase one million tonnes of LNG per year from Alaska, as part of a strategic energy agreement with the United States.
Chevron and HelleniQ Energy submit joint bid for four gas blocks off Crete
US-based Chevron has submitted a bid with HelleniQ Energy to explore four offshore blocks south of Crete, marking a new strategic step in gas exploration in the Eastern Mediterranean.
GTT wins contract for LNG tanks on floating unit in Africa
GTT has been selected by Samsung Heavy Industries to design cryogenic tanks for a floating natural gas liquefaction unit, scheduled for deployment at an offshore site in Africa.
BlackRock and partners target $10.3 billion for Aramco gas deal financing
A consortium led by BlackRock is in talks to raise up to $10.3 billion to finance a gas infrastructure deal with Aramco, including a dual-tranche loan structure and potential sukuk issuance.
TotalEnergies strengthens its presence in the United States with Rio Grande LNG Train 4
TotalEnergies commits to Train 4 of the Rio Grande LNG project in Texas, consolidating its position in liquefied natural gas with a 10% direct stake and a 1.5 Mtpa offtake agreement.
EQT signs 20-year deal for 1 Mtpa LNG with Commonwealth LNG
US producer EQT has secured a twenty-year liquefied natural gas supply contract with Commonwealth LNG, tied to a Gulf Coast terminal under development.
TotalEnergies confirms imminent investment decision for new LNG train in Texas
The Chief Executive Officer of TotalEnergies said that NextDecade would formalise on Tuesday a final investment decision for a new liquefaction unit under the Rio Grande LNG project in the United States.
McDermott wins major contract for $25bn gas liquefaction unit in Louisiana
Monkey Island LNG has awarded McDermott the design of a gas terminal with a potential capacity of 26 MTPA, using a modular format to increase on-site output density and reduce execution risks.
Two sanctioned Russian LNG carriers deliver to China despite restrictions
The Voskhod and Zarya vessels, targeted by Western sanctions, departed China’s Beihai terminal after potentially offloading liquefied natural gas from the Arctic LNG 2 project.
ADNOC Gas joins FTSE Emerging Index, unlocking up to $250mn in investments
ADNOC Gas will join the FTSE Emerging Index on September 22, potentially unlocking up to $250mn in liquidity, according to market projections.
BlueNord lowers Tyra production guidance for Q3 2025
Norwegian company BlueNord has revised downward its production forecasts for the Tyra gas field for the third quarter, following unplanned outages and more impactful maintenance than anticipated.
Monkey Island LNG integrates ConocoPhillips technology in strategic agreement
Monkey Island LNG adopts ConocoPhillips' Optimized Cascade® process for its 26 MTPA terminal in Louisiana, establishing a technology partnership focused on operational efficiency and competitive gas export pricing.
NextDecade signs 20-year LNG deal with EQT for 1.5 MTPA from Train 5
NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.
Sawgrass LNG extends supply contract with Barbados until 2030
Sawgrass LNG & Power has renewed its liquefied natural gas supply agreement with state-owned BNECL, consolidating a commercial cooperation that began in 2016.
Gazprom and CNPC seal binding agreement for the Power of Siberia 2 project
Gazprom and China National Petroleum Corporation have signed a binding memorandum to build the Power of Siberia 2 pipeline, set to deliver 50 bcm of Russian gas per year to China via Mongolia.
Permex Petroleum secures option to acquire 50 wells to power Bitcoin mining
Permex Petroleum signed a $3 million purchase option on oil and gas assets in Texas to support a strategy combining energy production and Bitcoin mining.
Enbridge deploys two new gas projects for 2.8 Bcf/d in the United States
Enbridge announces the implementation of two major natural gas transmission projects aimed at strengthening regional supply and supporting the LNG market.
Commonwealth LNG secures final non-FTA export authorization
Commonwealth LNG’s Louisiana liquefied natural gas project clears a decisive regulatory step with final approval from the U.S. Department of Energy for exports to non-free trade agreement countries.
Indonesia secures supply of 10 LNG cargoes for September
The Indonesian government confirmed the delivery of nine to ten liquefied natural gas cargoes for domestic demand in September, without affecting long-term export commitments.

Log in to read this article

You'll also have access to a selection of our best content.