Strong late-winter draw on high LNG stocks looks increasingly unlikely
Subdued Asian LNG interest produces large stockpiles
Weak prices support demand but mild weather, delayed gas projects, large reserves and nuclear alternatives set to blunt upturn
Those fearing a potential global gas crunch later this year will take heart from tepid Asia-Pacific LNG activity, which saw the JKM benchmark for spot Asia-Pacific cargoes hit its lowest level in March since July 2021. The lull in prices has incentivised the return of some Chinese players and is likely to attract price-sensitive markets in Asia, which are now looking to resume purchases. But overall demand remains subdued when it comes to the main import markets, with the weather playing a key role. China, Japan, South Korea and Taiwan are set to finish the winter with 3.4mn t more LNG in reserve than a year earlier, weighing on summer requirements to refill tanks for the peak summer cooling
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