Asian LNG demand rebounds as European imports retreat

Global liquefied natural gas (LNG) trade expanded by 2.4% in 2024, reaching 411.24M tonnes, according to the 2025 World LNG Report issued by the International Gas Union (IGU).

The year saw 22 exporting countries deliver LNG to 48 importers, underscoring the continued diversification of global gas flows.

IGU secretary general Menelaos Ydreos remarked, “2024 proved to be another vibrant year for the LNG sector’s rapid evolution. The trajectory of LNG growth persisted, bolstered by the introduction of two new exporting markets, while global LNG prices have eased compared with prior years.”

While the volume increase was modest in percentage terms, the trade dynamics marked a notable geographical rebalancing.

Asia and Asia Pacific accounted for virtually all the net growth in imports, offsetting a sharp contraction in European LNG intake, and Asia Pacific remained the dominant LNG exporting region in 2024, increasing output by 4.10M tonnes to 138.91M tonnes.

North America followed closely behind, registering an annual export growth of 4.11M tonnes to reach 88.64M tonnes, led by the ramp-up of liquefaction at the Plaquemines facility in the United States.

The Middle East, by contrast, experienced a minor decline in exports of 0.44M tonnes.

European imports declined by 21.22M tonnes year-on-year to 100.07M tonnes, their lowest level since 2021. The downturn was attributed to a combination of high storage inventories at the start of the year, a mild winter, subdued industrial gas demand, and robust pipeline supplies from Norway and Russia.

The UK recorded the steepest fall, down 6.48M tonnes to 8.03M tonnes, with further reductions seen in France, Spain, and the Netherlands.

In contrast, Asian demand picked up sharply, driven by climatic conditions and expanding gas infrastructure.

China remained the world’s largest importer, increasing its volumes by 7.45M tonnes to 78.64M tonnes, and India saw a 4.19M tonnes year-on-year rise in imports to 26.15M tonnes, supported by strong gas-for-power demand during prolonged heatwaves.

Overall, imports to Asia rose by 12.48M tonnes and to Asia Pacific by 9.77M tonnes, collectively accounting for over 70% of global LNG trade. This trend underscores a broader shift in LNG flows toward the East, reflecting both structural demand and short-term market signals.

Spot market activity was particularly robust in the first half of 2024 due to relatively low prices. The Platts Japan/Korea Marker averaged US$11.91 per million British thermal units (mmBtu), down 13.5% year-on-year, providing an incentive for opportunistic procurement by price-sensitive markets.

On the supply side, new exporters emerged with the start-up of floating LNG production in Mexico and Congo. These additions helped lift global liquefaction capacity to 494.40M tonnes per annum (mta) by year-end, an increase of 6.5 mta compared with 2023.

Despite the expansion, utilisation rates declined marginally to 86.7%, owing to maintenance and unplanned outages at various facilities.

Looking ahead, the IGU report notes more than 210 mta of new capacity is under construction or approved, with a further 1,121.9 mta in the pre-FID pipeline.

However, the report also flags risks of delay due to financing challenges, permitting bottlenecks and geopolitical factors.

The rebalancing of LNG trade in 2024 illustrates the market’s increasing regional complexity and responsiveness to shifting fundamentals.

While Europe’s role as a balancing market receded over the year, Asian importers once again took centre stage.

Reviewing the IGU report, Mr Ydreos noted, “Nonetheless, this market stability remains precarious, highly influenced by significant uncertainties surrounding market and project dynamics, geopolitics, trade and regulatory policies.”