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By Clyde Russell
LAUNCESTON, Australia, Nov 4 (Reuters) – Asia’s imports of liquefied natural gas (LNG) fell in October from the same month a year earlier, as top buyer China extended a run of weakness that has stretched for a year.
In contrast to the soft demand in the world’s top-importing region, demand for the super-chilled fuel has been robust in Europe as the continent builds inventories ahead of the northern winter.
Asia’s LNG imports were estimated at 22.84 million metric tons in October, up slightly from 22.47 million in September but down from the 24.39 million from October last year, according to data compiled by commodity analysts Kpler. October arrivals were still down from September on a per day basis at 737,000 tons from 749,000.
China, the world’s biggest LNG buyer, saw imports of 5.57 million tons in October, up a touch from 5.32 million in September, but down from 6.47 million in October 2024.
China’s LNG imports have declined from the same month a year earlier since November 2024, according to Kpler data.
For the first 10 months of the year, Asia’s LNG imports were 225.8 million tons, down 14.02 million from 239.82 million in the corresponding period a year earlier, according to Kpler.
But Europe’s appetite has more than compensated for Asia’s weakness, with imports for the January to October rising 16.75 million tons to 101.38 million, according to Kpler.
The strength in Europe’s demand has meant that spot prices have remained at relatively elevated levels in Asia, which in turn has trimmed demand in price-sensitive buyers.
Spot LNG for delivery to North Asia was assessed at $11.10 per million British thermal units (mmBtu) in the week ended October 31, down slightly from $11.20 the prior week.
The spot price has held above $10 per mmBtu since April 2024, and the low point so far in 2025 of $10.60 in early October is still well above the 2024 low of $8.30 and $9.00 from June 2023.
A spot price of above $10 per mmBtu renders LNG uncompetitive against domestic natural gas and pipeline imports from Russia and central Asia in China.
China’s spot purchases of LNG have fallen in 2025, with most imported cargoes being priced on long-term contracts that are cheaper than current spot prices.
INDIA SLIPS
India, Asia’s fourth-largest LNG importer, is also viewed as a price-sensitive buyer, and its October imports also showed a decline in year-on-year terms.
India imported 2.15 million tons in October, down from 2.37 million a year earlier, and while it was slightly up on the 2.12 million tons in September, it was lower on a per day basis.
The higher spot prices in Asia largely reflect the rising appetite for LNG in Europe, which is able to pay more in order to draw cargoes away from Asia.
Europe’s imports in October were assessed by Kpler at a seven-month high of 10.63 million tons, up from 8.66 million in September and 7.53 million in October last year.
Europe is turning to LNG to compensate for the loss of the bulk of pipeline supplies from Russia in the aftermath of Moscow’s 2022 invasion of Ukraine.
While the United States supplied more than half of Europe’s LNG in October, it’s worth noting that the continent is still buying from Russia, with 1.0 million tons arriving in the month, the highest since June.
Europe is likely to keep buying high volumes of LNG as winter approaches, with Kpler estimating that November will see arrivals of 10.9 million tons, which would be the most since March.
Asia is also likely to ramp up imports in the coming months, especially in Japan and South Korea, the next biggest buyers after China.
November LNG imports are on track to reach 25.01 million tons in Asia, according to Kpler, and if this forecast proves accurate it will be the first year-on-year increase since August.
The seasonal demand for LNG is likely to keep spot prices well supported over the winter period, as the expected surge in supply won’t hit the market until later in 2026 and 2027.
The views expressed here are those of the author, a columnist for Reuters.
Editing by Himani Sarkar
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