LNG imports to Asia hit a two-year low, while Europe nears record highs

As Russian gas supplies to Europe have fallen, activity on the global liquefied natural gas (LNG) market has increased. Europe is therefore having to compete more intensely for gas with other regions, especially Asia. In recent weeks, lower volumes of LNG have been heading to Asia, as high gas prices are drawing supplies to the European market.

Although LNG deliveries to Europe are nothing new in recent years, their importance has grown significantly following the sharp drop in Russian gas supplies. Last year, LNG imports to Europe were not particularly high, but they have been rising again since the start of this year.

The price increases of recent months have also contributed to this trend, with Asian traders according to Reuters avoiding the spot market. The reason is that prices are high, at least 50% higher year on year. Relatively mild winter weather has also contributed to lower gas demand in Northeast Asia.

According to data from Kpler, more than 20 million tonnes of LNG are expected to be shipped to Asian markets in February. That is a relatively sharp drop from 24.6 million tonnes in January and 22.7 million tonnes in February last year. It would also be the lowest monthly LNG import volume since April 2023.

By contrast, deliveries to the European market are increasing, with total imports in February expected to reach 11.81 million tonnes. This is comparable to January this year, when 11.84 million tonnes arrived on European markets. According to Reuters, these are the third- and fourth-highest months on record for LNG imports, while in terms of daily deliveries, February is the second-highest month in history, after April 2023.