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Europe To Receive Bulk of LNG This Year on Lower Asian Demand: Vitol

LNG

50 million tonnes of global LNG will be diverted to Europe in 2023, and that means demand in Asia is still far from recovering to 2021 levels, said Russell Hardy, CEO of Vitol Group.

  • In comparison, global LNG trade stood at 397mn tonnes in 2022, up by 16mn tonnes in 2021. Europe imported 121mn tonnes of LNG last year, up by 60% from 2021 levels according to Shell.
  • LNG spot prices will be at the $13-$15/mmbtu level this winter, which is still relatively expensive compared to coal, Hardy added.
  • “Europe is going to pay for that gas”, he said.
  • Hardy also said that Pakistan, and to some extent India and China, will make choices not to take in LNG at these prices and replace LNG with other fuels.

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