- Asia’s LNG imports slightly declined per day in May and are down 6.2% year-to-date due to weak demand from China.
- Europe’s LNG intake declined as storage filled, while U.S. exports rose to Asia to meet shifting demand.
Asia’s liquefied natural gas (LNG) imports stalled in May, while Europe’s demand continued to ease. Both regions entered the seasonal lull between winter and summer peaks.
According to data from commodity analysts Kpler, Asia is on track to import 22.53 million metric tons of LNG in May, up from 21.89 million in April. However, when adjusted for the number of days in the month, daily imports dipped slightly, from 730,000 tons in April to 727,000 tons in May.
Year-over-year comparisons reveal a broader downward trend. Asian LNG arrivals dropped by 4.5% compared to May 2024, reinforcing the pattern of softer demand seen throughout 2025. From January through May, Asia imported 112.45 million tons, 6.2% less than the 119.83 million tons recorded during the same period last year.
China, the world’s largest LNG importer, led this decline. High spot prices made LNG less competitive than domestic natural gas and pipeline imports from Central Asia and Russia. In May, China’s imports are expected to fall to 4.61 million tons, down from 4.86 million in April. Daily, that marks the lowest level since March 2020.
Although Asia’s LNG spot price dropped from its mid-February peak of $16.50 per million British thermal units (mmBtu) to $11 on May 2, the lowest in a year, it failed to reignite Chinese buying interest. Analysts believe any price above $10 per mmBtu makes spot purchases uneconomical for Chinese buyers.
Since early May, the spot price has rebounded, reaching $12.40 per mmBtu by the week of Friday, May 23. This renewed price strength could further dampen Chinese demand.
Despite weak demand, supply constraints may be pushing prices higher. Asia’s top LNG supplier, Australia, saw exports fall to a three-month low of 6.61 million tons in May following a reported outage at a major plant. At the same time, Malaysia’s exports dropped to a nine-month low of 1.71 million tons.
Meanwhile, reports that Egypt is seeking 40–60 LNG cargoes for the upcoming northern summer have boosted market sentiment. This unexpected demand could redirect Middle Eastern LNG supplies, mainly from Qatar and the United Arab Emirates, away from Asia.
In Europe, LNG demand continued to decline, with May imports dropping to 9.91 million tons, down from 10.37 million in April. Europe’s LNG intake has steadily decreased since peaking at a 27-month high of 12.78 million tons in March. With storage facilities replenished after heavy winter use, the region has scaled back on imports.
The United States remains Europe’s top LNG supplier, but U.S. exports fell to a five-month low of 5.53 million tons in May, down from 5.87 million in April. However, American exporters have redirected more volumes to Asia. Kpler tracked 1.86 million tons of U.S. LNG heading to Asia in May, up from 1.35 million in April, the highest since December.
Looking ahead, Asia is likely to receive even more U.S. LNG in June. Kpler estimates arrivals will hit 2.1 million tons. Several Asian countries are actively pursuing more U.S. LNG, as well as crude oil, in hopes of strengthening trade ties with the administration of U.S. President Donald Trump.
However, the market could tighten quickly if many countries compete simultaneously for the U.S. supply. Whether buyers are willing to pay a premium for American LNG could become a key geopolitical issue in the months ahead.