Tepid demand from China and lower purchases from price-sensitive buyers such as India dragged down Asia’s LNG imports in October from a year earlier, while Europe’s buying remains solid as the EU races to fill gas storage sites ahead of the winter.
LNG imports into Asia dropped last month to 22.84 million metric tons, down from the 24.39 million imported in October last year, per data from commodity analysts Kpler cited by Reuters columnist Clyde Russell.
China extended its weaker LNG import trend for yet another month, amid rising pipeline gas supply from Russia and central Asia, higher domestic gas production, and ample inventories at key hubs.
Chinese demand remains softer compared to year-ago levels. LNG imports into the world’s top LNG buyer have been falling year-on-year each month since November 2024, according to the data compiled by Kpler.
Despite the weaker Asian demand, spot LNG prices in North Asia remain supported by robust demand in Europe, which is buying up cargoes to fill gas inventories ahead of the 2025/2026 winter.
Yet, the relatively higher spot prices have deterred price-sensitive buyers in South Asia, such as India, whose LNG imports slipped in October from a year earlier.
Meanwhile, in Europe, LNG imports hit a seven-month high of 10.63 million tons in October, up from 7.53 million in October 2024, according to Kpler’s assessment.
Europe continues to stock up on LNG as it has a target to fill gas storage sites to 90% before winter. As of November 2, the EU storage sites were 83% full, according to data from Gas Infrastructure Europe, which is lower than last year’s filling rate.
European LNG imports are set for another increase this month, per Kpler estimates. Asia is also expected to boost purchases, preparing for colder temperatures. As a result, resilient LNG demand this winter is likely to support spot prices and boost revenues for U.S. LNG exporters.
By Tsvetana Paraskova for Oilprice.com
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