Asian LNG Demand Set for Second Annual Decline Amid Soaring Prices

Liquefied natural gas (LNG) demand in Asia is expected to decline for the second consecutive year, according to analysts cited by Reuters. The decline is attributed to soaring LNG prices globally, which have risen to $26 per million British thermal units (mmBtu), up from $10.40 per mmBtu in late February.

The northeastern parts of Asia are accounting for most of the demand destruction, as countries in this region have alternative energy sources such as coal and nuclear power. As a result, they were able to reduce their LNG demand, according to Rystad Energy analyst Lu Ming Pang.

China, the world's largest LNG importer, is particularly sensitive to price fluctuations, and under current high prices, discretionary stocking is expected to be delayed until late December or early 2027. India, on the other hand, is expected to maintain strong demand due to household gas consumption and the fertilizer sector.