Asian LNG spot buying remains sluggish heading into the summer months and is not expected to accelerate, which is likely to keep U.S. LNG flowing into Europe as the continent works to refill storage inventories that were drained over the winter.
Expand
Through May, Asia’s LNG imports fell 7% year/year to 111.8 million tons (Mt), according to Kpler. Europe’s LNG imports, meanwhile, have increased by 20% over the same time to 56.7 Mt.
The Trump administration’s trade war, higher spot prices and more long-term contracts have kept a lid on Asian spot buying. But China has been the main driver of the decline in Asia, which has historically been the world’s top destination for LNG.