Soaring LNG Prices Push Asian Demand Toward Second Annual Decline
Demand for liquefied natural gas in Asia is set to decline this year by between 3% and 10% on higher prices, according to analysts cited by Reuters. This would be the second annual decline in Asian LNG demand, with the northeastern parts of the continent accounting for most of it, the publication reported. LNG prices have soared globally in the aftermath of the QatarEnergy force majeure on…
Liquefied natural gas (LNG) demand in Asia is projected to drop between 3% and 10% this year due to rising prices, marking the second consecutive annual decrease, according to analysts. The northeastern regions of the continent bear the brunt of this decline. This decline in demand follows a global surge in LNG prices sparked by a force majeure at the QatarEnergy gas exports due to Iranian strikes on its Ras Laffan gas hub.
Analyst Lu Ming Pang from Rystad Energy explained that the strong power mix in Northeast Asia, comprising coal and nuclear energy sources, has helped offset some of the demand losses. Following the Qatar force majeure, LNG prices soared to $26 per million British thermal units in the week leading up to September 11, a significant increase from $10.40 per mmBtu in February.
Consequently, Asian LNG imports are anticipated to reach 20.09 million tons this month, the lowest September for LNG imports since 2018. China, being the world's largest LNG importer, is particularly vulnerable to price fluctuations. Kpler analyst Nelson Xiong anticipates that significant discretionary stocking of LNG will likely occur in late December or Q1 2027.
Meanwhile, India's demand for LNG is expected to stay robust, driven by household gas consumption and the fertilizer sector, according to LSEG data.
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