North America leads global long-term LNG contracts signed in 2023

North America has led globally in terms of the number of long-term contracts signed in 2023 for the export of liquified natural gas (LNG) with 21 contracts, according to GlobalData, the data and analytics company.

GlobalData’s latest report, Long-Term LNG Contracts Review Analytics by Region, Contracts and Companies, 2023, reveals that of the total long-term contracts signed in 2023 for the export of LNG from North America, 16 contracts are signed for exports from the US, four from Mexico, and one from Canada.

In the US, the biggest contract was inked by NextDecade, with a commitment to supply 5.4 million tonnes per annum (mtpa) of LNG to TotalEnergies from 2026 to 2046. NextDecade also signed one more contract for the supply of 1.0mtpa of LNG to Itochu Corporation for 15 years, from 2027 to 2042. LNG will be supplied from the Rio Grande terminal in Texas for both contracts.

Bhargavi Gandham, Oil and Gas Analyst at GlobalData, comments: “Energy companies in North America continue to bet on strong long-term LNG demand due to the role of natural gas as a bridge fuel for energy transition and decarbonisation efforts. The Russian-Ukraine war has provided additional opportunity for these companies to sign contracts for LNG exports to Europe.”

In Mexico, four contracts were signed by Mexico Pacific Limited LLC to supply LNG from the Sonora liquefaction terminal. Among these, the most substantial contract was with ConocoPhillips for the supply of 2.2mtpa of LNG for 20 years from 2027 to 2047.

In Canada, the contract was signed by Woodfibre LNG Ltd to supply 0.5mtpa of LNG from the Woodfibre terminal to BP plc for 15 years from 2027 to 2042.