According to a new report by EnergyQuest, LNG imports by North Asian countries (China, Japan, Korea and Taiwan) decreased by 7.5 per cent from 2021 to a total of 202.8 Mt LNG in 2022.

However, while Japan’s LNG imports fell by 3.1 Mt, it overtook lower Chinese imports (which were down 20.2 per cent in 2022) to once again become the world’s largest importer of LNG.

The Chinese government’s strict zero Covid-19 restrictions, increasing domestic production of natural gas output and the substitution of other means of covering energy demand led to a decline in LNG imports.

Despite this, Australia continues to have by far the largest market share in China in 2022 with 22 Mt (34.5%) of the total LNG imports.

While China’s imports from Australia fell by 29.9 per cent, Australia increased deliveries elsewhere in North Asia, to Japan, Korea and Taiwan, by a total of 7.8 Mt.

Japan imported a record 30.8 Mt of Australian LNG in 2022 (increasing by 15.8 per cent), well ahead of the 22 Mt imported by China, reversing the situation in 2021 when China imported 4.8 Mt more than Japan. As a result, Australia’s market share in Japan increased from 35.8 per cent in 2021 to 42.7 per cent in 2022.

In Korea, Australia was the largest supplier, overtaking Qatar, with 11.7 Mt, 25.1 per cent of total import volumes. This was higher compared to 2021 when Australia supplied 9.5 Mt (20.6 per cent of total imports).

Australia was the largest supplier to Taiwan again in 2022. Imports from Australia were 7.5 Mt in 2022, up 22.2 per cent from 6.1 Mt in 2021, supplying 37 per cent of the Taiwanese market, up from 32 per cent in 2021.

Other significant markets for Australian LNG in addition to China, Japan, Korea and Taiwan were Singapore, which imported 2.8 Mt of Australian LNG compared to 2.4 Mt in 2021, Malaysia which imported 2.1 Mt, up 31 per cent from 1.6 Mt in 2021 and Thailand, where 1.5 Mt was delivered in 2022, well up (114 per cent) on the 0.7 Mt delivered in 2021. India’s imports were up on the 0.29 Mt delivered in 2021, with 0.44 Mt delivered in 2022.

There were also small numbers of cargoes that went further afield, to Chile (3), Kuwait (2) and Europe (1).

EnergyQuest estimates Australia delivered a total of 81.2 Mt LNG in 2022, up 1.5 per cent from 80 Mt delivered in 2021, an increase in total Australian LNG deliveries of 1.2 Mt.

According to the Australian Bureau of Statistics (ABS) the total value of 2022 Australian LNG exports was $90.8 billion, up 83.4 per cent from $49.5 billion in 2021. Monthly revenue from LNG exports steadily increased to reach a 2022 high of A$10.4 billion in October, almost six times the low seen in September 2020.

This was due to import prices rising during 2022, along with the oil price, after prices took a big hit in 2020 as well as sustained high export volumes. Average Asian LNG import prices rose by 68.3 per cent and the average price of Australian LNG delivered to North Asia rose by 71.3 per cent from 2021.