Asia's LNG imports are expected to reach a three-month high in October, even as spot prices sit near four-year highs. China drives the increase, and the war closed the Strait of Hormuz to most Qatari cargoes.
Asia's liquefied natural gas imports are expected to climb to a three-month peak in October even as spot prices have surged to nearly four-year highs.
October arrivals in the region are forecast at 23.31 million metric tons, the highest since July's 23.38 million, according to a Reuters report citing data from analysts at Kpler. That makes it the second-strongest monthly total since the Middle East conflict began on February 28, when the US and Israel attacked Iran.
China leads the October increase
China, the world's largest importer of the super-chilled fuel, is driving the rise. Kpler projects Chinese arrivals of 5.47 million tons, up from 5.20 million in September, which would make it the third-strongest month in 2026.
Spot LNG for delivery to north Asia reached $29.30 per million British thermal units in the week to October 16, the highest since December 2023 and nearly triple the $10.40 level from late February.
The uptick in Chinese purchases suggests that demand ahead of the northern winter is outweighing price concerns.
War closes Hormuz to Qatari cargoes
The war led to the effective closure of the Strait of Hormuz. The closure prevented Qatar, which holds about 19% of global LNG market share as the world's second-largest exporter, from shipping most cargoes to Asian and European buyers.
Elevated prices had previously cut China's LNG demand, and Japan is likely to reclaim the position of world's largest importer this year.
Source: Commodities & Futures News
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