Asian Demand for LNG Plunges, Handing Lifeline to Europe

Asia's imports of liquefied natural gas (LNG) are set for their weakest September in eight years, driven by high spot prices that have deterred buyers in China and South Asia.

The top-importing continent is expected to see arrivals of 20.09 million tonnes of LNG in September, the lowest for this month since 19.88 million in September 2018, according to data compiled by commodity analysts Kpler.

This decline comes as European demand for LNG is increasing, with imports forecast to rise to 7.98 million tonnes in September, up from 7.55 million in August.

The ongoing loss of Qatar's LNG due to the war between the US and Iran has tightened the market, driving spot prices to a 45-month high of $26.00 per million British thermal units (mmBtu) for delivery to North Asia, more than double the level from February.