Asian LNG imports projected at eight-year low as Europe increases purchases

Asian liquefied natural gas (LNG) imports are projected to hit an eight-year low in September, as high spot prices deter buyers in China and South Asia. According to estimates from Kpler, Asian arrivals are expected to reach approximately 20.09 million tonnes, down from 22.27 million tonnes in September of the previous year.

This decline in Asian demand is providing an opportunity for European importers to secure more cargoes to bolster natural gas reserves ahead of the winter season. EU gas storage facilities are currently at roughly 68% capacity, which is 16 percentage points below the five-year average. European LNG imports are forecast to rise to 7.98 million tonnes in September, with continued growth expected through November, though European buyers are facing significantly higher prices.

The global market remains tight due to a major supply shortfall from Qatar. Conflict between the United States and Iran has caused significant shipping disruptions in the Strait of Hormuz. Prior to the conflict beginning on February 28, Qatar accounted for nearly 20% of global LNG supplies; however, shipments have dropped drastically, with only one cargo exiting the Strait in August compared to a previous three-month average of 6.51 million tonnes.