2023-07-15 21:19:15
The Russian invasion of Ukraine changed the gas market flows in 2022. And led to spain to become the country with the most liquefied natural gas (LNG) re-exported worldwide in 2022, with 35% of total sales coming from global imports, according to the annual report on International Group of LNG Importers, that brings together the main importing companies or terminal managers, such as the Spanish Nature. He stood ahead of Indonesia (17% of the global share) and China (13%).
It is, however, modest amounts: Spanish companies sold 1.4 million tons of the 19.30 million LNG imported during that year. Most of these re-exports went to european countries (1.2 million tons) after the cut in shipments from Russia by gas pipeline and the European will to reduce dependence on Moscow that produced a increase in LNG purchases in the continent of 45%, up to a total of 119.7 million tons.
Italia, followed by the Netherlands, was the main recipient of Spanish ships (with 560,000 tons) after the opening of the virtual pipeline between the ports of Barcelona and Livorno, that sought to attract LNG in smaller fleets given the size of the Italian port. In fact, if the flows from China, France or the Dominican Republic are added, Italy was the country that received re-exports last year.
In addition to LNG reshipments, Spain also registered record levels of shipments through its pipelines with a historical export record to France of 35 terabat-hours (TWh), which led it to end the year with a net exporter balance for the first time (14 TWh), according to the annual report of the National Commission for Markets and Competition (CNMC). Added to this is a total of almost 2 TWh since the start of the gas exports to Moroccoas well as the exits to Portugal of 6 TWh (compared to 5 TWh in 2021), with a net export balance of 1.2 TWh.
Purchases to Russia
Las imports of liquefied natural gas (LNG) in Europe shot up 45% in 2022 to a total of 119.71 million tons in view of the need to attract gas by barco to avoid any shortage problem. That, and the lack of prohibitions on the part of Europe, led to not discriminating countries and, therefore, triggered the LNG inflows from Russia by 9.1% with Spain and France leading as main importers, by having the largest regasification plants on the continent.
The third vice president and minister for the Ecological Transition, Teresa Riberadefended this week the difficulty of stopping the import of russian gas without a regulations prohibiting it. “We have asked intermediaries and importers to reduce (purchases) and not sign new contracts, we have requested it verbally and in writing. They have replied that they respect our proposal and that they have not increased (Russian imports). It is possible that they are others’traders’ that they have found that there is an option to store here and that they have decided to use that ability. We don’t like it at all, but it is very difficult to impose something if there is no rule that enables that imposition, “she justified during the informal meeting of energy ministers held in Valladolid, within the framework of the Spanish presidency of the Council of the European Union.
European purchases from Russia come mostly from Yamal LNGone of the largest plants in gas production and liquefaction of the world, which is 50.01% controlled by Novatek, Russia’s second largest gas producer. The French energetic Total Energy, which controls 19.4% of the shares of Novatek, has 20% of its project in Yamal, in which the China National Petroleum Corporationwith 20% of the capital, and the Chinese sovereign fund Silk Road Fundwith 9.9%.
America’s pull
Faced with the boom in European demand, the United States doubled its exports to this continent, going from 21.47 million tons to 51.74. The American country is disputed with Qatar and Australia the leadership of global LNG sales, after having increased its supply by 12.6% in the period after the start-up of the Sabine Pass and Calcasieu Pass liquefaction project and despite the Freeport installation abort.
The authors of the report, in fact, predict that in 2023 “it is likely” that the United States “will become the largest exporter of LNG“. The United States, Qatar and Australia captured the 60% of the total with between 79 and 75.4 million tons each. Russia ranked fourth, with 32 million tons sold, followed by Malaysia (27.6 million tons).
the asian comedown
Altogether, the global LNG trade reached 389.2 million tons, 4.5% more than a year earlier, with Europe absorbing most of the increase in supply after the changing trade flows that led to the asian countries to resort to alternative energy sources due to record prices or reduce your demand. Asia is by far the main recipient of this raw material with a market share of 64.7%, but after losing 7.6% of purchases compared to the previous year.
This is the case of countries like India, Pakistan and Bangladesh, very sensitive to prices; but above all China, which reduced gas purchases from methane tankers by 20% in 2022 to 63.32 million tons (16.3% of the total), after increasing its national production and imports through gas pipelines, in addition to reducing its consumption due to the persistence of covid. However, China was the second major buyer worldwide, after Japan (18.5% share).
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