Asia has become more active in buying LNG for the winter

Asian countries have begun to actively purchase liquefied natural gas (LNG) for the autumn and winter due to concerns about the prospects for Russian gas supplies to Europe, the reduction of which could deepen the deficit on the world market. And this, in turn, may lead to another increase in gas prices and strengthen competition between European and Asian consumers.

Traditionally, the countries of the Asia-Pacific region (APR) are the main consumers of LNG. However, today, in the current conditions, the European market is pulling over the supply of liquefied natural gas, offering a higher price for it.

Thus, Asia is trying to increase the purchase of «blue fuel» and fix the cost of winter gas supplies before a potential jump in world prices. South Korea, for example, recently bought more than 12 shipments of LNG for winter delivery, and among the largest enterprises in Japan there has been a demand for supplies since September. Taiwanese state-owned companies have also returned to the spot market after months of calm. 

Analysts note that gas prices in Asia and Europe are already record high for this time of year. This suggests that consumers in the Asia-Pacific region are starting to pay more to attract supplies to the region. At the same time, China has not yet entered the game, where anti-covid restrictions are still restraining demand for gas.