In this issue

 

Though China’s gas demand has shrunk this year as Beijing’s no-Covid policy hampered economic growth, PetroChina expects consumption will rebound by 5.5 percent to 7.2 percent between November and March…
China’s state-owned Sinopec has signed a $60 billion agreement to buy 4 mtpa of LNG from QatarEnergy’s North Field East project for 27 years, starting from 2026. The deal marks…
Though gas storages in the EU are now 95 percent full, the International Energy Agency (IEA) warns Europe could face a gap of 30 Bcm in the 2023 summer refill…
Free ReadSeveral prompt-delivery Atlantic LNG cargoes have reportedly been diverted to Asia due to sluggish demand in Europe amid unseasonably mild weather and healthy gas storage levels. Shipping companies are understood to…
Deterred by high spot prices, Asian utilities have turned to term LNG charters to refill storage ahead of the winter. Charters for 6-12 months were snapped up in a rapid…
Electricity shortages in China this summer have triggered a build-out in coal-fired generation to avoid a repeat of rolling blackouts. Through to 2024, a flurry of new coal-fired plants with 80…
Free ReadMounting gas shortages in Europe has not only drawn flexible LNG volumes away from Asia but also limited the number of available floating storage and regas (FSRU) vessels, the International…
Monday, 28 November 2022
There were 2.56mmt of LNG on the water with destinations in China according to our market visibility at the time of writing on 24 November. These cargoes had an estimated…
China’s monthly LNG offtake in October amounted to 4.77mmt, our data showed, which constituted negative monthly demand growth of 0.14mmt (-3 percent) from the 4.91mmt we recorded in September. Nevertheless,…
Free ReadNotwithstanding electric power shortages in Sichuan province, China’s overall gas demand has fallen nearly 5 percent in the second quarter of 2002 due to a sustained economic slowdown, a stark…
Sustained high prices over the past year have eroded the economic case for LNG and hurt sales in key Asian markets. “Less than one year into higher prices, LNG markets…
Chinese LNG imports in July 2022 to its network of 22 regasification terminals declined significantly on a year-on-year basis amid an economic slowdown while shipments from Russia’s state-owned Gazprom have…
September and October – the crucial pre-winter shoulder months – will determine how much Asia’s major swing LNG buyers, Japan and South Korea, will have to buy at short notice…
Free ReadLNG shipments to Japan keep growing despite high spot prices as the country depends on the super-chilled fuel for power generation: Japan again overtook China with regards to North East…

News Nudges

Europe’s gas crisis limits available FSRU vessels in Southeast Asia

Mounting gas shortages in Europe has not only drawn flexible LNG volumes away from Asia but also limited the number of available floating storage and regas (FSRU) vessels, the International Energy Agency (IEA) finds. To replace missing Russian supplies, European importers chartered 12 FSRU that were initially destined for LNG-to-power projects in Southeast Asia. Just over 20 FSRU vessels were available or under construction as of August. Since the war in Ukraine started in mid-February, 12 FSRUs have been chartered by European utility buyers for recently approved import terminals. Nine additional FSRU-based terminals are planned as EU gas buyers rush to replace Russian pipeline gas with LNG imports.The scarcity of floating LNG import terminals risk to slow down the electrification of emerging markets in Southeast Asia, where FRSU were meant to account for a sizeable share of future regas capacity. Gas is no longer the fuel of choice for decentralized power projects in Asia, as prices have gone through the roof and developers opt for renewables combined with energy storage instead.