Underscoring the weaker demand, LNG imports into NE Asia in June are set to fall from May, according to Refinitiv data. Imports typically rise in June as gas demand increases during the Northern Hemisphere summer. This slowdown is occurring as additional volumes from Russia, USA and Australia are expected to swell, according to Wood Mackenzie.
While long-term LNG demand is still set to grow, the rate will be slower compared with 2017 and 2018, said Wood Mackenzie. This is due to uncertain industrial growth, regasification capacity constraints and the reduced pace of coal-to-gas switching. In South Korea, the start-up of new nuclear power plants are expected further curb LNG imports. Japanese LNG demand is expected to be relatively flat in 2019, though there may be some upside in Q3 when nuclear plants undergo maintenance.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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