Chinese and Indian imports of liquefied natural gas (LNG) increased in March as a result of lower spot prices for LNG, which is enticing price-conscious consumers back to Asia.

 In the week ending April 6, the spot price of LNG for delivery to North Asia LNG-AS remained stable from the previous week at $12.50 per million British thermal units (mmBtu), which was the lowest level since June 2021.

 The cost has fallen by 67% from its mid-December top of $38 per mmBtu for the northern winter and by 82.3% from its all-time high of $70.50 set in August of last year, when demand for the super-chilled fuel in Europe spiked in response to the energy crisis brought on by Russia's invasion of Ukraine.

According to commodity experts Kpler, China imported 5.55 million tonnes of LNG in March, up from 4.95 million in February and significantly more than the 4.77 million imported in March of previous year.

 Last year, China lost its position as the largest LNG exporter to Japan, partly as a result of its utilities' withdrawal from the spot market as prices rose.

 India was yet another LNG importer hurt by the record-breaking spot prices last year, but it is now entering the market again as they are declining.

 According to Kpler data, India imported 1.84 million tonnes in March, up from 1.27 million in February, which was the lowest monthly total since January 2017.

India imported more goods in March than in any month since June 2022 and more than the 1.77 million tonnes imported in the same month last year.

 Pakistan, Bangladesh, and Thailand, three smaller Asian LNG importers, also saw an increase in arrivals in March compared to February.

 It's important to note that Asia's overall LNG imports were mostly stable in March, totaling 22.35 million tonnes, up slightly from 22.18 million in February but down on a daily basis.

 This is primarily due to the fact that developed country importers, like Japan, often see fewer imports when the high winter demand season comes to an end. Arrivals in March are estimated to be 5.58 million tonnes, down from 6.54 million in February. The third-largest LNG consumer in Asia, South Korea, imported 4.41 million tonnes of LNG in March, down from 5.13 million in February.

EUROPE RISING

Furthermore, utilities appear to be taking advantage of lower spot prices to maintain high natural gas inventories, which is necessary to avoid the threat of a complete end to already drastically reduced flows of Russian pipeline supplies. This is indicated by the fact that Europe's LNG imports appear to be increasing at the same time.

 According to Kpler, Europe imported 11.49 million tonnes of LNG in March compared to 11.37 million tonnes in February.

 The fact that 11.87 million tonnes are expected to arrive in April per Kpler's estimate indicates a further increase in that month's demand.

 The market is trying to determine whether the indications of a pick-up in demand in Europe and among some Asian purchasers will be sufficient to start a fresh rally in spot prices.

How soon would demand decline from Asia's price-sensitive consumers, including India and Pakistan, if spot prices do rise?

 It's also important to note that the availability of LNG has been increasing, with global exports reaching 36.83 million tonnes in March, the highest monthly amount in Kpler data going back to January 2009.

 March saw an increase in exports from the major three LNG suppliers, the United States, Australia, and Qatar.

 U.S. LNG exports reached a record high of 7.79 million tonnes in March, and Australia's exports, which totaled 7.24 million tonnes, also hit a new high. Exports from Qatar increased from 6.36 million tonnes in February to 6.77 million tonnes.