• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 8 days America should go after China but it should be done in a wise way.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Falling Spot Prices Trigger Surge in Asian LNG Imports

Asia’s LNG imports jumped in December to a record-high for any month in history as China regained the top importer spot from Japan and lower spot prices incentivized purchases.   

Last month, imports of LNG into Asia rose to 26.61 million metric tons, per data from commodity analysts Kpler cited by Reuters columnist Clyde Russell. Imports increased from the November level of 23.35 million tons and were also higher than the previous Asian LNG import record of 26.15 million tons set in January 2021, according to the data Kpler has compiled. 

China, Japan, and South Korea all saw higher LNG imports in December, with Japanese purchases at the highest level since January 2023 and South Korean imports at their highest since February 2021, per Kpler’s estimates. 

Despite the surge in LNG imports, Asia’s spot LNG prices fell at the end of 2023 to their lowest level in four months, as Asian demand was tepid in the autumn and exports from the top LNG exporters, the United States, Australia, and Qatar, also surged. 

In the week to December 29, the average LNG price for February delivery into northeast Asia fell to $11.70 per million British thermal units (MMBtu) from $11.90 per MMBtu in the previous week, to the lowest levels since August, industry sources told Reuters.

In 2023, China regained the top LNG importer spot from Japan, as Beijing’s LNG imports increased by 12% to nearly 71 million tons, ship-tracking data compiled by Bloomberg showed earlier this week. 

High LNG import levels in China and the rest of Asia could create more competition for LNG supply to Europe, which is now more dependent on the super-chilled fuel for its natural gas supply after the loss of a large part of the Russian pipeline gas supply. 

The relative calmness in the LNG market in recent months could turn into volatile turbulence again if fresh supply concerns emerge and if this winter is really cold in Europe and/or Asia. 

ADVERTISEMENT

As early as next week, a prolonged cold snap is forecast to grip most of northwestern Europe to last for most of January, testing Europe’s natural gas supply and energy infrastructure. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News