The Ukraine conflict reshaped gas markets in 2022, shifting flows and spotlighting LNG re-exports. Spain emerged as a leading LNG re-export hub, driven by its LNG import and regasification capacity. According to its annual review, by 2022 global LNG imports reached a substantial share of total sales, with Spain among the pivotal players. The International LNG Importers Group highlighted Spain, alongside major terminal operators, as central to the year’s re-export activity, trailing Indonesia and China in market share but still commanding a notable position in global trade.
In that year modest volumes were re-exported from Spain, totaling about 1.4 million tons of LNG from a broader import base of roughly 19.3 million tons. The bulk of these re-exports went to European destinations, reflecting Europe’s rapid shift away from Russian gas as pipeline supplies were curtailed. The continent saw a 45% rise in LNG purchases, reaching close to 119.7 million tons in total for the year.
The Netherlands and Italy subsequently became key destinations for Spanish LNG shipments, with Italy receiving about 560,000 tons as gas movements were optimized along the corridor between the ports of Barcelona and Livorno. Even when flows from China, France, or the Dominican Republic are included, Italy stood out as one of the last major re-exporters for that period.
Beyond LNG movements, Spain reported record pipeline exports, contributing to a net exporter balance for France that year. France closed the year with a net export of around 14 TWh, supported by about 2 TWh of exports to Morocco and roughly 6 TWh to Portugal. The overall balance registered at roughly 1.2 TWh, indicating a multi-year pattern of strong energy trade activity across the region.
Purchases made in Russia
The LNG import picture into Europe in 2022 included a 45% rise in LNG volumes offered on the market, totaling about 119.71 million tons. This expansion came as European buyers sought to secure supplies by sea, while avoiding supply shortages. Russia accounted for roughly 9.1% of LNG inflows, with Spain and France hosting the continent’s largest regasification capacity and acting as major entry points for LNG imports.
Teresa Ribera, the Vice President and Minister for the Ecological Transition, emphasized the challenge of reducing imports from Russia without hampering policy goals. She noted that intermediaries and importers were asked to minimize purchases and refrain from signing new contracts, both verbally and in writing. Some traders reportedly sought storage options within Europe, presenting a practical workaround rather than a policy solution. The remarks came during an informal energy ministers meeting in Valladolid, under Spain’s rotating EU presidency.
Russia’s LNG exports were heavily tied to the Yamal project, a major gas production and liquefaction facility controlled in large part by Novatek, Russia’s second-largest producer. The project involves partial stakes from TotalEnergies, China National Petroleum Corporation, and the Silk Road Fund, reflecting a broad, interconnected ownership structure that influences global LNG flows.
America’s Pull
In response to surging European demand, the United States significantly increased LNG shipments to the region, roughly doubling exports from 21.47 million tons to 51.74 million tons. Although Qatar and Australia are central players, American LNG exports rose after the Sabine Pass and Calcasieu Pass projects began operations, improving supply reliability amid market tensions. Analysts suggested that by 2023 the United States, along with Qatar and Australia, would dominate global LNG exports, each potentially contributing a substantial share of total sales.
In that context Russia remained a distant fourth, with around 32 million tons of sales, while Malaysia also played a notable role with about 27.6 million tons. The competitive landscape highlighted how political and technical developments shape regional trade and pricing in LNG markets.
Asia’s Decline
Global LNG trade continued to expand, with Europe contributing to a 4.5 percent year-on-year increase to about 389.2 million tons. Europe accounted for the bulk of the growth, while Asia remained the largest single region buyer overall, holding about 64.7 percent of the market. However, Asia reduced purchases relative to the previous year as high prices and demand shifts prompted buyers to diversify toward alternative energy sources.
India, Pakistan, and Bangladesh demonstrated price sensitivity in their LNG programs. China reduced LNG purchases from methane tankers by roughly 20 percent to about 63.32 million tons, while boosting domestic production and pipeline imports. Despite this, China remained a major buyer, with Japan also occupying a large share of global LNG demand.
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