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Europe LNG Imports Hit 5-Year Low as Asia Demand Slows on High Japan Stocks, Vortexa Says

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Europe's liquefied natural gas inflows fell to their weakest level in five years last week, while high Japanese stocks weighed on Asian demand, Vortexa analysts said in a Monday note.

Europe's LNG imports fell to their lowest weekly level since 2021, with deliveries totaling 1 million metric tons across 22 cargoes, extending a subdued summer demand trend.

The continent's 28-day moving average of imports remains around 30% below year-ago levels, although the Atlantic inter-basin arbitrage has shifted in Europe's favor for the shoulder season and winter, potentially attracting more cargoes from September.

France received no LNG cargoes in a week for the first time since March 2023 as the prompt TTF price traded above the price at Point d'Echange de Gaz, or PEG, France's virtual trading hub, discouraging deliveries.

Belgium also recorded its first cargo-free week in a year. Germany bucked the regional trend, with imports rising 10% above their four-week average.

Italy's imports held steady at 300,000 mt despite a suspension of gas send-out at the Ravenna floating storage and regasification unit since July 19.

Northwest Europe delivered LNG prices averaged $20.30 per million British thermal units, while EU gas storage stood at 55%, 16 percentage points below the five-year average.

Asia's LNG imports fell last week despite widespread heatwaves, as ample inventories in Japan curbed buying while renewed US-Iran hostilities lifted spot LNG prices.

Regional arrivals totaled 4.1 mmt across 62 cargoes, about 15% below the four-week average. Japan's imports dropped to 400,000 mt in six cargoes, the lowest since May 2023, with LNG stocks for power generation more than 20% above the five-year July average.

The country's 28-day moving average of imports has fallen to a three-year low.

China received 1.1 mmt across 18 cargoes, 10% below its four-week average, while reloads reached their highest since March, including three re-exported cargoes.

South Korea, which imported 900,000 mt, and Taiwan at 600,000 mt, maintained robust imports, both more than 10% above recent averages.

India's imports fell to a two-month low of 400,000 mt as temperatures eased, while Pakistan received a third consecutive spot cargo following a PetroChina tender.

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