Qatar confirmed it will not reduce LNG loadings from its massive 77mtpa Ras Laffan LNG complex even as global gas prices remain at historic lows – the LNG powerhouse is confident it can wait out its competition, we think. However, whereas historically Qatar’s most significant markets have been Asian demand growth centres, wobbly demand there compelled at least a temporary pivot towards North Europe and the Middle East, our data shows. Meanwhile, OPEX cuts are in the offing, too.
Monthly trade noticeably decreased by 2.88mmt in April following steep demand reductions in Japan, India and Europe
The gradual easing of lockdown measures in India promises a return to accelerated demand growth down the line. Our data already shows year-on-year demand growth acceleration for 1H May. However, the lockdown measures have noticeably flattened the country’s demand growth curve.
One of the consequences of the global lockdown has been that natural gas demand has dropped by 1.1 billion cubic metres, down 11 percent from normal times, or 780,000 tonnes in LNG-equivalent per day, according to the latest energy report from Japan with 2020 projections.