Asia’s Winter LNG Demand Remains Weak: Argus

Winter restocking spot demand for LNG among Asian buyers has been more tepid than last year, according to Argus Media.

• Higher inventories stocked up in advance, coupled with forecasts of a milder winter are driving the lackluster demand.
• Most buyers had already secured winter cargoes through bilateral deals earlier in the year whilst spot prices hovered around $10/MMBtu.
• The market has also seen a rise in intermittent buying behaviour, Argus said.
• Only a few companies have been in the hunt for December deliveries, including a large tender from Unipec which awarded six cargoes for December. South GS Energy and Taiwan's CPC also acquired cargoes.
• Japan has been absent from the market despite low inventories. Argus attributes this to a rise in nuclear output and contractual arrivals throughout the winter.