Exchange volume data shows that In Q4 2023, global LNG futures trading volumes were the highest of any quarter ever, growing approximately 12.5% year-on-year.
Between ICE and the CME, Q4 volumes showed 182,971 lots. Market activity was influenced by supply uncertainties and the narrowing spread between Asian and European LNG futures.
Most recently, December experienced a 36.62% monthly decline but a 49.87% increase compared to the previous year. This was due in part to spot LNG prices in the Asia-Pacific which fell due to low demand and ample inventories.
Arbitrage opportunities continue to be limited by uncertainties at major canals. For Colombia, 2023 saw an unprecedented increase in LNG imports, reaching 36.3 Bcf due to drought-driven demand for gas-fired electricity.
The majority of these imports were from U.S. export plants. December alone accounted for 9.7 Bcf, the highest monthly import in Colombia’s history.
Source: Gelber & Associates