Yuta Koga of Nikkei Asia reports that LNG shipments shifted to India and Southeast Asia as extreme heat, lower prices, and decarbonization drove a regional uptick as European demand sagged. He writes:
More exports of liquefied natural gas are heading to India and Southeast Asia as soaring temperatures and a push toward decarbonization stoke demand for cheaper, lower-emissions fuel.
LNG trade flows to India and the rest of South Asia increased 9% on the year to 33.27 million tonnes in 2023, data from LSEG shows. The figure is on pace to grow in 2024 as well, with the January-July tally coming to 23.06 million tonnes.
July flows to South Asia totaled 3.51 million tonnes, outpacing shipments to Europe on a monthly basis for the first time since the autumn of 2021.
LNG trade flows to Southeast Asia jumped 26% in 2023 to a record 25.68 million tonnes. In 2024, the January-July figure increased 23% on the year to 17.96 million tonnes. […]
Certain countries in the region, such as Malaysia and Indonesia, produce their own gas. Still, “Southeast Asia is projected to transform into a net gas importer by around 2028-2029, given that indigenous gas production in countries is either declining, or unable to meet the rising demand,” the GECF said in a report.
Demand in Japan, now a leading importer, is expected to drop 42% by 2050 amid a shrinking population, a slowing economy and a shift toward nuclear energy.
“India’s and Southeast Asia’s presence in the market will grow, as will their influence over international prices,” JOGMEC’s Shirakawa said.
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