Demand for liquefied natural gas (LNG) has experienced its first annual drop in Asia since 2015 as Europe push to replace Russian piped gas with LNG, causing prices to hit record levels in 2022.
According to a report by IEEFA, as Asian demand was stifled by unaffordable prices, utility profits waned, proposed import projects stalled and countries grappled with persistent threats of fuel shortages and blackouts.
The IEEFA warns that challenges could persist throughout 2023 if volatile prices and unreliable supplies continue to blight key Asian markets.
In Asian spot markets LNG averaged $34 per million British thermal unit (MMBtu) in 2022, more than double the annual average in 2021.
This results in Asian LNG demand falling from 270m tonnes in 2021 to 250m tonnes in 2022, according to figures from IHS Markit.
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