East Asian LNG demand may not threaten Europe

Risks persist, particularly those related to weather, which could tighten gas availability for Europe

Europe’s gas market is no longer an island. The bloc pivoted rapidly towards LNG and away from Russian pipeline supplies following the invasion of Ukraine last year. This has put European gas buyers in direct competition for cargoes with the established LNG markets of East Asia. China and Japan have jockeyed for position as the world’s largest LNG consumer in recent years, with South Korea taking third place. Altogether, that means the Northeast Asia region is vital to global LNG demand and flows. And so, in this increasingly global context, East Asian demand will prove a critical factor in how much LNG is available to supply Europe this winter. “One of the biggest questions the market is fa