Global LNG imports were set to reach the highest in a year last month, as Europe's winter demand drew cargoes away from Asia.
A total of 38.12 mill tonnes of LNG was on track to be imported in January, up from 37.69 mill in December and the most since January, 2024's 38.73 mill, according to data compiled by commodity analysts, Kpler.
According to Kpler, Europe's imports were expected to rise to 11.82 mill tonnes, up from 10.87 mill in December and the highest since April, 2023.
While Europe's LNG imports were set to rise 8.7% in January from the month before, arrivals from Russia were forecast to drop to 1.60 mill tonnes, down 11.6% from December's 1.81 mill tonnes.
Europe's Russian LNG imports are increasingly uncertain, especially with the return of Donald Trump as US President.
Trump is strongly in favour of boosting US energy exports, and LNG shipments to Europe offer one of the best opportunities to do so, sources said.
If European countries agree to phase out imports from Russia in favour of US cargoes, this move would help meet several objectives.
These include putting further pressure on Russian President, Vladimir Putin, to end the war in Ukraine, as well as giving Trump a ‘win’ that may help ease the threat of new tariffs on Europe's exports to the US.
Surplus predicted
However, the global LNG market may move into surplus soon, making it in the interests of both Trump and US LNG exporters to try and limit Russian export markets.
Europe's US LNG imports were expected to rise to a record high of 6.7 mill tonnes in January, up from 5.20 mill in December and 11.7% above the previous peak of 6 mill tonnes in January last year.
In contrast, Asia's imports of US LNG were predicted to drop to 1.81 mill tonnes last month, down from 2.2 mill in December and the lowest since February, 2024, according to Kpler.
Overall, Asia's total LNG imports were also set for a decline in January, dropping to 24.48 mill tonnes from a 10-month high of 25.50 mill in December.
This decline was largely down to a milder-than-usual winter, which has trimmed demand in China, Japan and South Korea, the world's top three importers.
Relatively high spot prices have also cut demand, especially in China, where January arrivals were forecast to be 6.29 mill tonnes, down from December's 7.58 mill and almost 20% below the 7.83 mill seen in January, 2024.
