The new swing market: Asia LNG demand response to high prices

The centre of global LNG demand growth has shifted from Asia to Europe following Russia’s invasion of Ukraine. Asian LNG demand has fallen 7% year-to-date in the face of surging European demand and soaring TTF prices. Buyers across Asia have been forced to secure LNG spot cargoes at record prices. In emerging Asia, this has led to soaring gas and electricity prices, rising subsidy bills, rolling power blackouts and curtailments to industrial users. With winter coming and continued uncertainty over the future of Russian piped gas flows into Europe, the risk to LNG demand in Asia remains acute. And further demand response may be needed through the first half of this decade until new LNG supply eases the market from 2026. Further demand reduction is almost certain in Asia. But where in Asia is demand destruction at greatest risk?