New Delhi: The export of liquefied natural gas (LNG) to India and Southeast Asia is constantly rising as soaring temperatures and a push towards decarbonisation has driven demand for this cleaner and cost-effective fuel.
In 2023, LNG trade flows to India and South Asia grew by 9% year-over-year, reaching 33.27 million tonnes, according to data from LSEG. The pace is expected to continue in 2024, with January-July figures already at 23.06 million tonnes, it said.
In July, the figure for LNG shipments to South Asia reached 3.51 million tonnes, surpassing monthly exports to Europe for the first time since autumn 2021. Southeast Asia also saw a significant increase with LNG trade flows rising 26% in 2023 to a record 25.68 million tonnes. In 2024, the figure from January and July rose by 23% year-over-year to 17.96 million tonnes.
The region’s growing demand is reflected in new importers like Vietnam and the Philippines, who began importing LNG in 2023, alongside established importers such as Thailand and Singapore.
New importers the Philippines and Vietnam, which started taking LNG shipments last year, have also bumped up their purchases. Vietnam received three cargoes in April and May for power generation, while buyers in the Philippines shipped nine cargoes so far this year versus 11 for all of last year.
Rising demand for cooling is set to continue as Northeast Asia enters its summer. Japan’s meteorological agency forecast likely higher-than-average temperatures from June to August, and China’s energy regulator warned power supply will be tight in some regions for the next few months amid growing consumption.
Japan government data showed LNG stockpiles by utilities at 2.06 million tons as of May 26, below the five-year average for the period, as Tokyo is already experiencing hot weather.
According to reports, South Korean power generation company Korea Midland Power Co, Thailand state-energy firm PTT, Philippines power producer First Gen and Bangladesh’s state-owned Rupantarita Prakritik Gas Co Ltd have all also issued tenders seeking LNG for delivery in July.
