, APAC
Photo by orlando s. on Unsplash

Asia's demand for US LNG remains strong in May

This is driven by imports in Japan, India, and South Korea.

Asia is still the preferred destination for US free-on-board liquified natural gas cargoes in May, with India, Japan, and South Korea resuming their buying activity.

In a report, Rystad Energy said Indian importers, which include the Gujarat State Petroleum Corporation purchased a cargo worth around $11 per metric million British thermal units (MMBtu) for late June and early July, whilst Indian Oi Corporation and Gail purchased cargoed for June.

Meanwhile, South Korean importer Posco bought a spot LNG cargo and Korea Midland Power also sought a cargo, both for July delivery.

Meanwhile, in Japan, local utility Tohoku Electric Power orders a mid-July delivery cargo opting for high gross heating value.

ALSO READ: Japanese utility firms into serious business of reselling LNG surplus

Kansai Electric Power also bought LNG for July because its 900-megawatt Maizuru cola power plant unit 1 stopped operation on 9 May until 5 July, and the plant’s 900 MW unit 2 will remain closed until 29 July.

Japan’s major utilities have a combined LNG storage level of 2.6 million tonnes as of May, which is 7.1% higher than the five-year average ending in May, but is 6.2% lower year-on-year.

"Asia remains the preferred destination of US free-on-board (FOB) LNG cargoes as the arbitrage has been mainly open for May. Therefore, we may see additional US-origin LNG being offered in Asia for June and July delivery, though the majority of US-origin LNG has been discharged into Europe since last year,” said Masanori Odaka, senior analyst at Rystad Energy.

 

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!