United States could become top liquefied natural gas market, according to IHS Markit report

According to an IHS Markit report, the United States and mainland China, the world’s largest economies, are set to become the biggest export and import markets for liquefied natural gas (LNG) this year.

“A new map of LNG is taking shape as 2021 became the year of rapid recovery, making the oversupply and price lows of 2020 seem like a distant memory,” Michael Stoppard, IHS Markit chief strategist for global gas, said. “It is a tale of two markets with China fueling the demand surge as the world’s top importer and the United States, poised to become the world’s leading exporter, providing the supply push.”

In 2021, the United States was the third-largest LNG exporter behind Australia and Qatar and the largest source of LNG supply growth.

The United States added 25 million metric tons (MMt) in 2021. This came as plants increased production compared to 2020, and liquefaction capacity continued to grow.

During the third quarter of 2021, average utilization for U.S. plants spiked to 98 percent, compared to 43 percent in the third quarter of the previous year.

Mainland China has already become the largest global importer of LNG. Last year, imports reached 81 MMt, an 18 percent increase.

IHS Markit is a critical information, analytics, and solutions company.