Asian LNG Import remains soft in July when Europe draws cargo
The Asian Liquefied Natural Gas Import Run (LNG) is determined to be extended for another month in July, with the top imported area on the path for a small increase from June.
Very cold fuel imports in Asia are estimated at 22.07 million metric tons in July, up from 21.80 million in June, according to data compiled by the KPler Commodity Analyst.
On the basis per day the July number is 722,000 tons, which slightly dropped from 727,000 in June.
Juli’s soft import continued this year’s trend from the decline in LNG’s arrival in Asia, with the first seven months 2025 came at 155.82 million tons, down 6.3% from 166.22 million during the same period last year.
Unlike the declining Asian LNG imports, Europe has a higher trend, with the first seven months to see the arrival of 75.61 million tons, up 24% from 61.13 million for the same period in 2024, according to KPler data.
Extra 14.48 million tons of LNG that has been heading to Europe in the first seven months reflects the continental effort to refill the inventory before winter while continuing to avoid pipe gas from Russia.
Extra European demand has become an advantage for LNG exporters because it has helped maintain a higher global price, and most of them prevent the usual seasonal decline in both volumes and spot prices seen in the shoulder season between the peaks of winter and summer.
But higher prices also cause lower demand than buyers who are sensitive to prices in Asia, especially China, the largest LNG importer in the world.
China decreased
China’s LNG import was on the track to reach 4.96 million tons in July, down from 5.09 million in June and 5.92 million in July 2024, according to KPler data.
During the first seven months of this year, Chinese imports were estimated by the KPler of 35.17 million tons, down 21.2% from 44.64 million for the same period in 2024.
The decline in Chinese LNG imports also contributed 91% of the total decreased imports of Asia in the first seven months of 2025.
The remaining declines can be mostly considered from India, the fourth largest LNG buyer in Asia, with imports in the January to July period is estimated at 14.08 million tons, down from 16.11 million for the same period in 2024.
The decline in imports by China and India came as the price of LNG for shipping to North Asia (LNG-As) fixed at a high level.
Spot prices fell to $ 12.33 per million British Thermal Unit (MMBTU) this week to July 14 from $ 12.90 in the previous week.
Although this is similar to $ 12.00 per MMBTU applicable on the same week in 2024, what is different so far in 2025 is that the lowest price so far, $ 11.00 at the end of April, far above the lowest point $ 8.30 in February 2024 and $ 9.00 in June 2023.
The fact that the price of spots does not experience the usual seasonal decline after the north winter means that Chinese buyers cannot take cargo at economical prices.
The price of spots above $ 10- $ 11 per MMBTU is believed to make LNG imports uncompetitive against domestic output and pipe supply from Russia and Central Asia.
This is also a case that China has produced more domestic natural gas, with official data showing output up 5.8% in the first half of 2025 to the equivalent of 96.8 million tons, an increase of around 5 million tons.
Pipe imports also increased by around 6%, or 3 million tons.
However, the combined increase in domestic output and pipe imports is still below the decline of nearly 9.5 million tons of LNG imports, showing that the high price of LNG spots acts to reduce demand.
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Source: Reuters
