Asian LNG buyers drive demand growth as flexibility shapes contracts: report

Chinese buyers show the strongest appetite for long-term contracts at 83%.

Asian liquefied natural gas buyers are positioning for demand growth and greater contract flexibility as new global supply is expected to stabilise prices at $7 to $10 per MMBTU by 2030, according to McKinsey’s 2025 LNG Buyers’ Survey.  

Price sensitivity remains pronounced in China, where buyers report they would switch from coal to LNG when prices reach around $8 per MMBTU.

Buyers in Japan and South Korea also expect lower prices to stimulate demand, although with greater uncertainty around volumes.

Geopolitical risk management is prompting Asian buyers to diversify supply sources and cap exposure to single suppliers, the survey found.

Unlike peers elsewhere, Asian respondents also reported additional strategies, including sourcing from trusted portfolio players and limiting higher-risk suppliers to spot purchases.

Contracting activity is set to intensify, with about 70% of global buyers planning to secure both short- and long-term contracts over the next two to three years, and Asia–Pacific respondents showing particularly strong interest in short-term deals.

Chinese buyers show the strongest appetite for long-term contracts at 83%, up 16 percentage points from two years earlier, whilst Japan and South Korea also favour long-term arrangements at 78%.

Flexibility ranks as the dominant contract priority, with flexible destinations and purchase volumes cited as the most important features, whilst Chinese buyers place pricing flexibility and flexible payment terms at the top of their list.