Asia’s December LNG imports hit record high as cold bites, China leads

Asia’s imports of liquefied natural gas (LNG) rose to a record high in December led by China and Japan, shiptracking data showed, as a cold spell in some parts of the region led to a surge in demand for heating.

Asia, the main demand centre for LNG, is set to import nearly 27 million tonnes in December, about 18% more than November’s 22.8 million tonnes and also much higher than the previous record of about 23.6 million tonnes set in December 2019, data from Refinitiv Eikon showed on Thursday.

China, whose gas demand was one of the earliest hit from the COVID-19 pandemic this year, overtook Japan as the world’s top LNG importer for a second straight month in December.

It imported a record high of about 9.05 million tonnes in December, compared with Japan’s 8.1 million tonnes, the shiptracking data showed.

China’s December imports are set to jump about 40% from November while Japan’s incoming shipments are set to rise about 27%.

Official customs data from both countries will not be available until next month.

Earlier this week, China’s central economic planner, the National Development and Reform Commission (NDRC), urged companies to step up imports of natural gas, a key heating fuel for winter in China’s north, and thermal coal as temperatures are set to fall sharply.

Japan, which has maintained its annual lead as LNG importer this year, is experiencing heavy snow in several parts, prompting the cancellation of scores of flights.

The surge in imports has already caused a spike in spot Asian LNG prices to a six-year high, which in turn is exacerbating a supply crunch in key fast-growing emerging markets in Asia.

Main Photo: The Malaysia-registered LNG tanker Serry Sandrawash receives LNG for power generation at an LNG (liquefied natural gas) base in Incheon, west of Seoul, South Korea,. EPA-EFE/YONHAP