Jul 1, 2025
Europe leads the increase in LNG imports while Asia struggles due to rising prices.
Global imports of liquefied natural gas (LNG) increased in the first half of 2025, driven by stronger demand in Europe, which attracted cargoes from Asia. Total imports reached 208.62 million metric tons, a 1.7% rise from 205.11 million the previous year. Asia's imports decreased by 9.09 million tons (6.4%) to 133.41 million, while Europe saw a 21.6% increase (11.8 million tons) to 66.43 million. This trend underscores Europe’s shift towards LNG to compensate for reduced pipeline gas from Russia since the invasion of Ukraine.
Europe's LNG arrivals are expected to remain elevated as the region works to replenish gas inventories ahead of peak winter demand. By the end of June, Europe’s storage was only 56.8% full, significantly lower than 75.5% at the same time last year. Consequently, Europe is likely to continue purchasing high levels of LNG, with the typical decline in imports during the shoulder season possibly less significant this year.
Although Europe's LNG imports eased from a peak of 12.78 million tons in March to 9.79 million in June, every month in 2025 has surpassed corresponding months from 2024, with June’s arrivals being 36% higher than last year's figures.
The strong demand from Europe has contributed to higher Asian spot LNG prices compared to 2024, mitigating usual seasonal declines. As of June 27, spot LNG prices for North Asia were assessed at $13.10 per million British thermal units (mmBtu), down from a four-month high of $14 the previous week. Year-to-date lows reached $11 per mmBtu, still above 2024's low of $8.30. The highest price in 2025 was $16.10 per mmBtu in February, surpassing any price recorded in 2024.
The elevated prices have led to reduced purchases in price-sensitive markets like China and India. China, the largest LNG importer, recorded lower arrivals in each month of 2025 compared to 2024, importing 5.12 million tons in June—up from May's 4.90 million but below June last year's 5.87 million. For the first half, China's imports totaled 30.27 million tons, down 22% from 38.79 million the previous year. Meanwhile, India’s imports also dropped, with 12.4 million tons down 8.7% from 13.58 million.
The declines in China and India indicate the impact of rising European demand on Asian prices. A spot price above $12 per mmBtu renders LNG largely uncompetitive in China, suggesting that if European demand keeps prices high, buyers may delay spot purchases or even reallocate contracted volumes to higher-priced markets.
Europe's LNG arrivals are expected to remain elevated as the region works to replenish gas inventories ahead of peak winter demand. By the end of June, Europe’s storage was only 56.8% full, significantly lower than 75.5% at the same time last year. Consequently, Europe is likely to continue purchasing high levels of LNG, with the typical decline in imports during the shoulder season possibly less significant this year.
Although Europe's LNG imports eased from a peak of 12.78 million tons in March to 9.79 million in June, every month in 2025 has surpassed corresponding months from 2024, with June’s arrivals being 36% higher than last year's figures.
The strong demand from Europe has contributed to higher Asian spot LNG prices compared to 2024, mitigating usual seasonal declines. As of June 27, spot LNG prices for North Asia were assessed at $13.10 per million British thermal units (mmBtu), down from a four-month high of $14 the previous week. Year-to-date lows reached $11 per mmBtu, still above 2024's low of $8.30. The highest price in 2025 was $16.10 per mmBtu in February, surpassing any price recorded in 2024.
The elevated prices have led to reduced purchases in price-sensitive markets like China and India. China, the largest LNG importer, recorded lower arrivals in each month of 2025 compared to 2024, importing 5.12 million tons in June—up from May's 4.90 million but below June last year's 5.87 million. For the first half, China's imports totaled 30.27 million tons, down 22% from 38.79 million the previous year. Meanwhile, India’s imports also dropped, with 12.4 million tons down 8.7% from 13.58 million.
The declines in China and India indicate the impact of rising European demand on Asian prices. A spot price above $12 per mmBtu renders LNG largely uncompetitive in China, suggesting that if European demand keeps prices high, buyers may delay spot purchases or even reallocate contracted volumes to higher-priced markets.