Asia Pacific: Trade
Northeast Asia’s LNG imports will see strong annual growth in H2 following dramatic increases in China’s LNG imports in August and September.
The hot weather that hit key regional gas markets in China over the summer boosted demand for LNG imports. As a result, LNG imports rose by 60% on an annual basis in August and by 95% in September. Increased demand for air conditioning in large markets in the south pushed up requirements for gas-fired power generation, and flows from LNG terminals helped meet the need. High demand hit stock levels at the region’s terminals, which have had to increase imports to rebuild inventory levels. China’s growing supply/demand gap has also supported increased demand for piped imports, which jumped by 58% year on year in September. Total gas and LNG imports in September were up by 72% on an annual basis. Regional LNG import growth will be strong in Q4 (see China’s regional markets present upside for LNG, 17 November 2016).