Asia’s imports of liquefied natural gas (LNG) are set to reach a six-month high in July, while Europe’s LNG imports are expected to fall to their lowest level in nearly two years, reflecting a major shift in global gas trade flows.
According to commodity analytics firm Kpler, Asia is expected to import 23.05 million metric tonnes of LNG in July, up 6 percent from June and marking the fourth consecutive monthly increase.
The recovery has been driven largely by stronger demand from China, the world’s largest LNG importer, whose purchases are forecast to reach 5.62 million tonnes, the highest level since January.
The rebound follows a decline in LNG prices after earlier volatility triggered by Middle East tensions.
However, renewed conflict involving Iran and the continued disruption of shipping through the Strait of Hormuz have pushed spot LNG prices higher again, raising concerns over future supply.
Japan, South Korea and Singapore have increased imports of U.S. LNG to offset reduced supplies from Qatar. Asia’s imports of U.S. LNG are projected to reach a record 4.23 million tonnes in July, nearly three times the level recorded in February.
