Oil & Gas


ASIA'S LNG DEMAND SLOWS AS CHINA CUTS BACK, U.S. BECOMES KEY SUPPLIER AMID SHIFTING GLOBAL FOWS.

JUMA SULEIMAN
1 week, 5 days

Asia’s LNG imports are expected to reach 22.53 million metric tons in May 2025, a modest rise from April but still 4.5% lower than a year ago, driven primarily by declining Chinese demand. China, the world’s largest LNG importer, scaled back its purchases to 4.61 million tons its lowest daily rate since March 2020 due to high spot prices and a preference for cheaper pipeline gas from Central Asia and Russia. Despite recent price drops, spot LNG remains uneconomical for China above $10 per mmBtu, curbing its appetite further even as prices rallied to $12.40 by late May.

This weakening demand in Asia coincides with tighter supply conditions. Australia and Malaysia the region’s major suppliers saw output dips due to outages, while Egypt’s unexpected LNG purchases for the northern summer have added pressure on global supply. Meanwhile, Europe’s LNG intake eased to 9.91 million tons as storage levels recovered post-winter. Notably, U.S. LNG exports to Asia surged, hitting their highest level since December, as countries in the region seek closer trade ties with Washington by purchasing more American energy. This emerging dynamic raises both business and geopolitical questions about supply limits, price competitiveness, and strategic alignment in the global LNG market.


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