Asia Remains Top Consumer of US LNG,But Shipments to Europe Surging

摘要

Despite a very narrow arbitrage window,Asia continues to be the largest consumer of US LNG this year,taking 3 5% of the 319 cargoes exported in the January-August period.South Korea led the way,taking in 48 of the 113 Asia-bound shipments.The biggest year-over-year increase in exports was to Europe,however,where 97 cargoes landed in the first eight months of the year,up from just six in the comparable 2018 period(see chart).Overall US LNG volumes into Asia-which includes Japan,India,Taiwan,China,Pakistan and Thailand-were stable year on year and are expected to remain strong despite bearish prices and the impact of the accelerating US-China trade dispute,analysts say.”Utility buyers like [South Korea's] Kogas would probably need strong and sustained price incentives to start going to the trouble of redirecting contracted US cargoes in any event,”Columbia University Center on Global Energy Policy Senior Research Associate Akos Losz told Energy intelligence.Kogas,the world's second-largest LNG buyer,mainly uses US LNG to meet baseload requirements rather than as a portfolio player,Losz explained.