By Clyde Russell
LAUNCESTON, Australia- The world’s top buyers of liquefied natural gas (LNG) are ramping up imports of the fuel in November, with the major consumers in Asia drawing more cargoes than gas-starved Europe.
Asia’s big three buyers – China, Japan and South Korea – are forecast to discharge 17.77 million tons of the super-chilled fuel in November, according to data compiled by commodity consultants Kpler.
This is up from 15.41 million tons in October, and will be the highest monthly total for the world’s top three buyers since February, when 19.01 million tons were discharged.
Vessel-tracking and port data compiled by Refinitiv also points to an increase in imports by China, Japan and South Korea, pegging their November imports at 16.62 million tons, up from 15.13 million in October.
If there is strong demand from the three major northeast Asian countries, however, the same cannot be said for buyers in South Asia, where imports have slumped amid record high spot prices.
India is on track to import just 1.51 million tons of LNG in November – the lowest since April 2020, at the height of the initial outbreak of the coronavirus pandemic, according to Kpler. That would be well below the 2.33 million tons landed in October, and a similar 2.33 million tons in November 2020.
Pakistan’s November imports are forecast to be just 700,000 tons, down from 730,000 in October and the lowest monthly total since June. Bangladesh is expected to land 360,000 tons in November, down from October’s 530,000 tons.
The weakness in South Asia stands in contrast to the major countries in the northeast of the region, with China forecast to import 7.37 million tons in November, up from 6.19 million in October and the most since January.
As an aside, Australia remains China’s top LNG supplier despite tensions between Beijing and Canberra that have led to China imposing informal import bans and tariffs on a variety of Australian commodities, including coal, barley and lobsters.
China is expected to import 2.99 million tons of Australian LNG in November, the most since May and representing a share of just over 40 percent of the total.
Japan, at risk of losing the number one spot among LNG importers to China, is slated to land 6.04 million tons in November, up from 5.19 million in October, although down slightly from 6.3 million in November last year.
South Korea, the world’s number three buyer, is forecast to import 4.36 million tons in November, up from 4.07 million in October and above the 3.86 million from November last year.
Overall, the picture emerging from the big three Asian buyers is one of solid demand ahead of the northern winter, but not yet reaching the peak of demand seen the previous winter, when colder-than-usual weather led to a squeeze on supplies.
