Daily Energy Report
Daily Energy Report
Global LNG exports, Sidi Kerir oil inventories, Asia LNG, Saudi crude price to Asia, China LNG ambition, India’s Russian oil imports, Biden EV truck fantasy, India hydro problem, and more.
Chart of the Day: Global LNG Exports/Demand Increased by 3.2% in the First Quarter
Bloomberg: Asian LNG Imports Jump to Record for March on Bargain Buying
Summary
Figure (1) above showed global LNG exports in the first quarter of 2024 compared to exports in the first quarter of 2023. LNG exported by producers is actually the demand of the consumers. For the whole quarter, LNG exports/demand increased by 3.2% year-over-year. About 71% of the increase came from the US. The rest came from Nigeria, Australia, and Qatar. LNG shipments to Asia rose 12% in March. Shipments to Europe in March fell 20% since September. China's LNG imports rose by 22%, India's by nearly 30%, and Japan also saw an 8% increase, bringing more cargo into their domestic markets rather than reselling.
EOA’s Main Takeaway
This fits perfectly with our projection that LNG demand will hit a record high in 2024 and most of the demand will come from Asia.
Here are some conclusions from a report we published on January 5, 2024: Global LNG Market in 2023 and Outlook for 2024
“China is set to drive global LNG demand in 2024. The EOA forecasts that China’s demand could reach 80 mt, up from 72 mt in 2023, surpassing demand in 2021 at 79 mt. However, Chinese demand remains price-sensitive, where lower prices incentivize Chinese buyers to purchase spot cargoes.
In 2023, spot prices for Asian LNG averaged $18 per MMBtu, down from $70 per MMBtu in 2022 following Russia’s invasion of Ukraine. The EOA forecasts that prices could further ease in 2024 to about $15 to $16 per MMBtu, thanks to expected growth in LNG supply from new projects.”