LNG in World Markets: Brisk Pace of LNG Contracting Continued in 2023

This current feature was extracted from the latest edition of Poten’s LNG in World Markets, a monthly service published on January 31, 2024.

Market players signed new long-term LNG contracts at a frenetic pace in 2023, a signal natural gas will be part of the global energy mix for decades to come, despite forecasts that hydrocarbons are headed for extinction.

Poten & Partners has confirmed that 67 sales and purchase agreements (SPA) covering more than 62 MMt were signed in 2023. Another 21 heads of agreements (HOA) or other similar intermediate-stage deals were also signed, covering another 21 MMt.

The overall volume of 62.3 MMt signed in 2023 in new SPAs fell short of 2022’s record volume of nearly 72 MMt. However, the 67 deals in 2023 eclipsed the number of transactions penned in 2022, when 57 SPAs were signed. The drop in volume and increase in the number of deals year-onyear means that the average deal size in 2023 was about 930,000 t, compared to just over 1.25 MMt per transaction in 2022.

The rapid pace of dealmaking allowed three US projects – Rio Grande LNG Phase 1, Plaquemines LNG Phase 2 and Port Arthur LNG Phase 1 – to reach final investment decisions (FID) in 2023. Deals signed by several other North American projects allowed them to advance within striking distance of reaching FID this year.

To read the full analysis, please click here.

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