Europe's LNG purchases hit seasonal record as Asian demand slumps

Imports of liquefied natural gas (LNG) to Europe rose to the highest level for this time of year, according to ship tracking data compiled by Bloomberg. The rise in supplies was bolstered by weaker demand in competing Asia. This kind of market dynamic has weakened prices ahead of the season of reserves replenishing, crucial for the European Union (EU).

Fuel flows to key terminals in Northwestern and Eastern Europe are exceeding both seasonal averages and peaks observed since 2017 in the data, the agency noted.

Bloomberg journalists pointed out a decrease in Asian LNG demand over the recent weeks. The most prominent fall was registered in China. According to Kpler, China’s imports are expected to drop 22%year-on-year this month. As a result, some Chinese companies are redirecting purchased cargoes to regions with higher prices, with its main destination being Europe.

For European countries, this scenario could prove favorable after a harsh winter significantly depleted the region's reserves of the fuel. Additional supplies have already helped ease price pressure in the EU, as they have fallen by about 30% since this year's February peak.