Kpler data shows decline in May LNG imports to Europe and Asia

In May, liquefied natural gas (LNG) imports to Europe and Asia kept declining. Demand in both regions slumped seasonally between winter and summer peaks, Reuters reports.

Compared to April, LNG supplies to Asia decreased by 4.5%, continuing this year's downward trend mainly caused by a drop in China's imports of the fuel due to high prices. China, formerly the world's top LNG consumer, has been recently relying on domestic production and pipeline gas deliveries.

According to Kpler's forecast, this month China's LNG imports will fall to 4.61 million tons, down from 4.86 million tons in April. In Europe, May energy demand is also expected to decrease to 9.91 million tons, down from 10.37 million tons in April.

Despite lower consumption in two key regions, LNG prices rose to $12.40 per million British thermal units. Reuters attributes this increase to lower supplies from Australia and Malaysia and higher demand in Egypt, which is experiencing an energy crisis. Additionally, experts anticipate heightened competition for American liquefied gas, which could lead to a rapid depletion of US reserves.