Liquefied natural gas (LNG) imports to Asia are expected to remain low in April. Meanwhile, signs of seasonal demand weakness have started to emerge in Europe as winter peak consumption passed.
According to Kpler's preliminary estimates, Asia will purchase 22.4 million tons of LNG this month, down from the 23.32 million tons recorded last April. Reuters reports that much of this decline is due to lower imports from China. Higher prices and the trade confrontation with the United States are the main factors restraining demand for gas in the republic. The agency notes that China stopped buying American fuel two months ago. Still, the US continues to trade with other countries in the region.
Additionally, the United States remains the largest supplier of LNG to Europe. Kpler forecasts that gas imports to the EU in April may be the lowest in the last four months. However, year-on-year growth will be 15.7%. Most of this increase is provided by supplies from the US.
Reuters states that almost all LNG importers, except China, are looking to purchase more American gas, which suggests that the market may tighten.