'US LNG Exports Reach Record High'... Largest Importer is Korea, Up 23% YoY

Stock photo [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] This year, the United States' liquefied natural gas (LNG) exports increased by about 40% compared to last year, reaching an all-time high. The country that imported the most U.S.-produced LNG was Korea, with imports rising approximately 23% compared to last year.

According to the U.S. Energy Information Administration (EIA) on the 25th, from January to July this year, U.S. LNG exports totaled 1.3046 trillion cubic feet, a 40.1% increase from the same period last year (931.5 billion cubic feet).

Korea's imports of U.S.-produced LNG amounted to 167.6 billion cubic feet, up 22.5% from the same period last year. Korea has been the largest importer of U.S. LNG since 2018.

According to data from the Korea International Trade Association, among Korea's total natural gas imports of 28.32 million tons up to September this year, 4.05 million tons, or 14.3%, were U.S.-produced LNG.

Korea's share of total U.S. LNG exports this year was 12.8%. Although this is the highest share, it is about 2 percentage points lower than 14.7% in the same period last year.

Imports from European countries such as Spain, the United Kingdom, France, Greece, and Belgium increased two to three times compared to last year, and imports of U.S.-produced LNG by Asian countries including Japan, China, and Turkey increased up to fivefold. The countries importing the most U.S. LNG after Korea were Japan and Spain, respectively.

According to global industry analysis firm IHS Markit, although most LNG imported into Asia is currently linked to oil prices, the increase in imports of North American LNG, which is not linked to oil prices, suggests that future Asian LNG prices will be influenced more by U.S. LNG price indicators such as Henry Hub rather than oil prices.

An energy industry official said, "Previously, Korea imported LNG only from a few countries such as Qatar, but by diversifying import sources to include the U.S. and others, supply stability has been enhanced."

He added, "Not only traditional LNG importers like Korea and Japan but also China and Europe are increasing their imports of U.S.-produced LNG. Since natural gas is being used as a low-carbon energy source in various ways and U.S. LNG is competitive due to price stability, imports are expected to continue increasing."

This content was produced with the assistance of AI translation services.