APAC LNG Prices Slip for First Time in 4 Weeks

Asian LNG prices fell for the first time in four weeks last week, according to Reuters, amid signs of peaking seasonal demand.

• Spot LNG prices were $13.80/MMBtu Aug. 23, down 2.1% on the week.
• Prices had been bolstered by stronger cooling demand from China and Japan.
• Asia’s imports of LNG are heading for a seven-month high of 25.03m mt in August, Kpler said. This compares to 23.86m mt in July and 23.32m mt in Aug. 2023.
• China’s August imports are on track to hit 6.94m mt, the highest since January.
• While China’s demand is rising, only a fraction of its power demand is from LNG, most coming from coal, renewable energy, and nuclear.
• However, elastic buyers have trimmed imports as spot prices remain too high.
• India’s imports are seen at a four-month low of 2.09m mt in August, while Thailand’s imports in August are below 1m mt for the first time since April.
• Weaker demand in Europe has also freed up spot supply, Reuters said.