Vietnam and the Philippines will import liquefied natural gas for the first time in 2023, spurring strong demand from existing importers such as Thailand and Singapore. Read more
Liquefied natural gas (LNG) exports to India and Southeast Asia are continuing to grow as rising temperatures and the drive towards decarbonization drive demand for this cleaner and cost-effective fuel.
LNG trade to India and South Asia is set to reach 33.27 million tonnes in 2023, up 9% from 2018, according to LSEG data. That pace is expected to continue into 2024, with figures for the first July already reaching 23.06 million tonnes, it said.
In July, LNG shipments to South Asia reached 3.51 million tonnes, surpassing monthly exports to Europe for the first time since autumn 2021. Southeast Asia also saw strong increases, with LNG trade in 2023 rising 26% year-on-year to a record high of 25.68 million tonnes. For 2024, the January and July figures are up 23% year-on-year to 17.96 million tonnes.
Rising demand in the region is reflected in new importers such as Vietnam and the Philippines, which began importing LNG in 2023, in addition to existing importers such as Thailand and Singapore.
New importers, the Philippines and Vietnam, which started importing LNG last year, are also increasing their purchases. Vietnam received three cargoes for power generation in April and May, while Philippine buyers have shipped nine cargoes so far this year, compared with just 11 last year.
Demand for cooling is set to continue rising as summer approaches in Northeast Asia: Japan's Meteorological Agency predicts warmer-than-normal temperatures from June to August, and China's energy regulator has warned that rising consumption will tighten power supplies in some regions in the coming months.
With Tokyo already experiencing scorching heat, LNG stockpiles by power companies stood at 2.06 million tonnes as of May 26, below the five-year average for the period, according to Japanese government data.
South Korean power producer Korea Midland Power, Thailand's state-run energy company PTT, Philippine power producer First Gen and Bangladesh's national gas company Rupantarita Prakritik Gas have also submitted bids for LNG for delivery in July, according to reports.
