LONDON—Prices of Asian spot liquefied natural gas (LNG) fell this week to a new one-year low on weak demand and as trade wars raise concerns over long-term Asian demand.
The average LNG price for June delivery into north-east Asia LNG-AS was at $11.00 per million British thermal units (mmBtu), its lowest level since mid-May 2024 and down from $11.80/mmBtu last week, indy sources estimated.
“LNG price expectations have been transformed in the last two and a half months. US President Trump’s tariff war is set to slow global demand, European gas storage targets are being weakened and imports into the world’s biggest LNG buyer, China, have slumped,” said Alex Froley, senior LNG analyst at ICIS.
China’s demand remains subdued, with LNG imports down 26 percent in April 2025 compared to April 2024, while imports for January-April this year were down 23 percent from the year before, Froley said.
Toby Copson, chairman at Davenport Energy Partners, said that there was very little fundamental demand in the East for spot cargoes, and utilities aren’t stepping in yet to cover cooling demand.
“Sentiment is negative. I don’t see a floor yet. If price- sensitive nations start picking up attractive lower prices, we might see rates stabilize. However, trade wars create demand destruction, and there is plenty of supply available,” Copson added.
Trade tensions continue to weigh on the outlook for LNG demand this year especially from Asia, with China re-exporting record volumes of LNG in April, said Rabobank energy strategist Florence Schmit.
In South Korea, buyers are seeking cargoes to refill low storages and there has also been stronger demand from Indian buyers due to low price levels, said Martin Senior, Argus’ head of LNG pricing.
