LNG

Paris-based Bureau Veritas Marine & Offshore (BV) announced a slew of initiatives at last week’s LNG2026.

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Private capital from Asian exploration and production (E&P) investors is flocking to the North American market in search for LNG-linked assets. Deal flow is increasingly shaped by a ‘merger of equals’ as consolidation accelerates among Canada’s Montney shale producers, and rising interest of Asian buyers in shale and LNG-linked assets.

The arbitrage for shipping US LNG cargoes to Northeast Asia has fallen to –$0.2/MMBtu, the lowest level since February 2025 — even though Atlantic freight rates have declined by more than $70,000 per day over the past month, a move that would typically bolster Asia-bound LNG shipping. The narrowing arbitrage for US LNG freight moving to Asia has largely been caused by a tighter JKM-TTF price spread, analysts at Spark Commodities pointed out.

Japan’s biggest power generator JERA as well as Hokkaido Gas have sealed long-term LNG sale and purchase agreements (SPA) with flexible delivery patterns, catering to seasonal demand swings.

Australia’s oil and gas giant Santos has shipped the first LNG cargo from its $6.1 billion Barossa gas project in the Timor Sea. The cargo on the carrier ‘Kool Blizzard’ was scheduled to arrive at Japan’s Sakai terminal on around February 2.

Market Summary: Japan imported 12.20mmt of LNG during December 2025 to January 2026, receiving 192 cargoes from 13 supplier countries. Australia was the leading supplier with a 35 percent share, followed by Malaysia (17 percent) and the United States (9 percent).

Korea Southern Power (KOSPO) and Hanwha Energy, Hanwha Aerospace are about to jointly procure US LNG, leveraging Hanwha’s expanding LNG value chain and carrier fleet. By pooling procurement, the three companies aim to secure favourable contract terms and pricing structures.

South Korea’s state-run utility KOGAS targets to raise the share of LNG in the power gen mix from 16.9 percent currently to 18.8 percent by 2030. US LNG imports to Korea already more than doubled year-on-year amid an ongoing Free Trade Agreements renegotiation, after the US Trump administration has voiced concerns about America’s trade deficit with South Korea.

Amazon Web Services will help SK Group build Korea’s first AI hyperscale data centre in Ulsan, powered by LNG. All electricity needs of the data center will be met by Ulsan Gas Power Station (1,200 MW), capable to switch to LPG when LNG prices rise.