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In August 2024, global LNG imports recorded a decline of 0.3 percent (0.11 Mt) to 33.49
Mt, Doha-based GECF said in its gas market report.
GECF said the decline was primarily driven by lower imports in Europe, although this was partially offset by increased imports in the Asia Pacific and MENA regions.
The Asia Pacific region’s spot LNG prices maintained a significant premium over those in Europe, attracting more cargoes, it said.
Furthermore, a decrease in US LNG exports in July 2024, due to the impact of Hurricane Beryl on its LNG exports, contributed to the overall reduction in imports.
Between January and August 2024, global LNG imports increased by 0.7 percent (1.89 Mt) year-on-year to 272.47 Mt, driven by strong growth in the Asia-Pacific region, offsetting a slump in Europe, GECF said.
For the full year 2024, global LNG trade is forecasted to rise by 1-1.5 percent driven by stronger demand in the Asia Pacific region, particularly in China and South and South East Asia, it said.
European LNG imports continue to drop
In August 2024, Europe’s LNG imports dropped by 22 percent (1.85 Mt) y-o-y to 6.76 Mt, marking the 14th consecutive month of decline, GECF said.
This reduction was driven by lower gas consumption, strong pipeline gas imports, and high gas inventories across the region.
Additionally, the significant price disparity between spot LNG in Asia Pacific and Europe limited LNG flows from the Atlantic basin into Europe, GECF said.
The decline in imports was significant in Belgium, France, the Netherlands, Spain, and the UK, while Poland experienced an increase.
From January to August 2024, Europe’s LNG imports fell by 20 percent (17.14 Mt) y-o-y to 67.39 Mt.
The decline in LNG imports in Belgium was due to reduced gas consumption, high gas storage levels, and increased pipeline gas imports from Norway and the UK, GECF said.
Similarly, in the Netherlands, lower gas consumption, higher pipeline imports from Norway and the UK, and reduced pipeline gas exports to Germany contributed to the drop in LNG imports.
In France, decreased gas consumption, increased pipeline imports from Norway, and extended maintenance at the Montoir regasification terminal led to lower LNG imports, GECF said.
Spain’s imports were curbed by stronger pipeline gas imports from Algeria and reduced gas consumption.
In the UK, a rise in pipeline imports from Norway and weaker gas demand drove the decline in LNG imports.
Conversely, Poland saw an increase in LNG imports due to higher gas consumption, GECF said.
Asia Pacific LNG imports climb
GECF said that Asia Pacific’s LNG imports continued to rise in August, increasing by 3.9 percent (0.88 Mt) yo-y, which was the smallest incremental increase since February 2024.
China, Singapore, South Korea, and Taiwan drove the growth in the region’s LNG imports, offsetting weaker imports in Bangladesh, Japan, and Thailand.
From January to August 2024, Asia Pacific’s LNG imports grew by 9.4 percent (16.13 Mt) y-o-y to 187.48 Mt, GECF said.
The increase in Chinese LNG imports was driven by stronger gas demand, supported by robust economic activity, cooling demand induced by hotter weather, and higher LNG demand for trucks, according to GECF.
In Singapore, higher demand for LNG bunkering boosted imports.
Meanwhile, rising gas demand for electricity generation in South Korea and Taiwan, due to reduced output from coal and nuclear power respectively, contributed to the uptick in LNG imports.
In contrast, Bangladesh saw a decline in LNG imports as the Summit LNG FSRU remained offline due to damage to an underwater gas transmission pipeline.
In Japan, reduced LNG imports from the US and weaker gas demand for electricity generation curbed overall imports.
Finally, the surge in Asian spot LNG prices may have contributed to the drop in Thailand’s LNG imports, GECF said.
Latin America and MENA
In August 2024, LNG imports in the Latin America & the Caribbean (LAC) region rose by 8.4 percent (0.10 Mt) y-o-y, reaching 1.29 Mt, GECF said.
The increase was primarily driven by higher imports in Brazil, Colombia, Jamaica and Panama, which offset lower imports in the Dominican Republic.
Between January and August 2024, LNG imports in the LAC region increased by 5.5 percent (0.48 Mt) y-o-y to 9.20 Mt, according to GECF.
Drought conditions in Brazil reduced hydroelectric output, increasing the demand for gas in electricity generation and driving up LNG imports.
Similarly, higher gas demand for electricity generation contributed to the rise in Colombia’s LNG imports, GECF said.
In contrast, the Dominican Republic saw a decline in LNG imports, likely due to higher storage levels following lower gas consumption in July after Hurricane Beryl’s passage, it said.
Moreover, LNG imports in the MENA region surged in August for the second consecutive month, rising by 66 percent (0.74 Mt) y-o-y to 1.86 Mt, driven by Egypt and Jordan, GECF said.
Between January and August 2024, MENA region’s LNG imports increased by 45 percent (2.29 Mt) y-o-y to 7.35 Mt.
Egypt resumed LNG imports in June 2024 due to lower gas availability and has utilized LNG regasification terminals in the country as well as the Aqaba LNG import terminal in Jordan.
LNG exports up 3.6 percent
GECF said that global LNG exports grew by 3.6 percent (1.20 Mt) y-o-y in August, reaching 34.24 Mt, the highest level since March 2024 and a record for the month of August.
The increase was driven by exports in both GECF and non-GECF countries, offsetting a decline in LNG re-exports.
The GECF and non-GECF shares of global LNG exports rose from 45.9 percent and 52.7 percent respectively in August 2023 to 46.6 percent and 53.1 percent in August 2024, respectively.
In contrast, the share of LNG re-exports dropped from 1.4 percent to 0.3 percent during the same period, GECF said.
From January to August 2024, global LNG exports increased by 1.1 percent (2.99 Mt) y-o-y, totalling 272.82 Mt, GECF said.
The US, Qatar, and Australia remained the top three LNG exporters globally in August 2024, it said.