Reuters reports that, with demand for the cryogenic fuel falling in South Korea and Japan, and increasing slower than expected in China last year, Europe has become the major destination for LNG cargoes not wanted in Asia.
In a report published earlier this week, Refinitiv analysts said: “Uncommitted cargoes will largely end up in northwest Europe, a region which plays a key balancing role in periods of oversupply.”
Analysts therefore expect LNG imports in Europe to reach nearly 100 million t during 2020. This is compared to a record of around 85 million t of LNG delivered in 2019.
These analysts went on to say that the excess is expected to average approximately 78 cargoes this year. This could increase Europe’s imports to 96 million t. For comparison, Japan – the world’s largest LNG importer – imported 76 million t last year.
According to Reuters, the main reason for the increase in imports will be a further decline in gas prices in Europe.
The shift is reportedly taking place as new LNG projects located in both Russia and the US are transporting the majority of their supplies to Europe.
Read the article online at: https://www.lngindustry.com/regasification/31012020/european-lng-imports-to-reach-nearly-100-million-t-this-year/