Asia buys more LNG despite surging prices, El Niño clouds outlook
UNG•Asia’s LNG imports are estimated to reach 23.31 million metric tons in October, the highest since July, despite spot prices near a four-year high. China’s imports are forecast to rise, while Japan’s and Europe’s are expected to decline from a year earlier.
1. Asian imports rise
Asia’s LNG arrivals are estimated at 23.31 million metric tons in October, up from September and the strongest monthly total since July, according to Kpler. China’s imports are forecast at 5.47 million tons, compared with 5.20 million in September, as buying ahead of the northern winter outweighs higher prices. Spot LNG for delivery to north Asia reached $29.30 per million British thermal units in the week to October 16, almost triple its level at the end of February.
2. Regional demand diverges
Japan’s October imports are expected to fall to 4.47 million tons, a five-month low, while its utilities’ LNG inventories were 36% above the year-earlier level as of October 18. Europe’s imports are estimated at 9.11 million tons, below October last year, despite gas inventories being 74.6% full on October 21. A strong El Niño could bring warmer, wetter weather to Europe and more severe winter storms to North Asia, potentially affecting regional LNG demand.
