Asian LNG Imports Plummet as European Buyers Seize on Opportunistic Cargoes

A shift in global gas trade is underway as Asian buyers step back and European importers compete for remaining liquefied natural gas (LNG) cargoes.

The Kpler analysts estimate that Asia's imports of LNG in September could be the lowest in eight years, at around 20.09 million tonnes. This figure would be lower than the 22.27 million tonnes imported last year and the 22.25 million tonnes in August this year.

This decline in Asian demand is creating opportunities for Europe to build up its natural gas reserves ahead of winter. According to Kpler, European LNG imports could rise to 7.98 million tonnes in September, the highest figure since May, and more than the 7.55 million tonnes recorded in August.

The current situation is reminiscent of the 2022 energy crisis, when Russian pipeline gas supplies to Europe were reduced following Russia's invasion of Ukraine. The spot prices for LNG have surged due to the prolonged loss of Qatari supplies, with the cost of deliveries to North Asia reaching $26 per 1 million British thermal units in the week ending September 11.

The high spot prices are forcing Asian buyers, particularly China and India, to cut their purchases. China is estimated to receive around 4.32 million tonnes in September, while India's imports may reach only 1.86 million tonnes. Meanwhile, Europe continues to import more gas at a substantial premium.