UK LNG imports almost triple as Asian price plummets

The UK could see its monthly imports of liquefied natural gas triple compared with last year as market competition from Asia fades in line with lower prices.

Already, the UK has imported nine cargoes of LNG in March, and market specialists at Icis say that at least another four are expected to arrive before the month’s end.

The UK’s gas market has been forced to compete with the more lucrative Asian market for its share of the global LNG supply since 2010, but lower demand-led prices in the Far East since the beginning of the year mean that the UK’s security of gas supply has become more robust.

Icis head of LNG Ed Cox told Utility Week that the UK is expected to secure at least 13 cargoes this month, compared with five cargoes in March last year.

“Nine LNG cargoes arrived at the UK’s LNG terminals by 18 March. Four more LNG arrivals are expected at Milford Haven until month-end. However, more cargoes could come on top of this,” he said.

The UK market is more competitive due to historic losses in the Asian LNG market.

Energy market specialists at Platts assessed the index price for LNG in the Japan and Korea at almost 60 per cent below where it was this time last year.

“The year-on-year drop was largely attributed to weaker-than-expected demand from buyers in northeast Asia, where both electricity generation and utility gas usage are down on fairly mild temperatures over the winter season, and slowing economic growth,” Platts said.

Platts saw an all-time record year-on-year plunge of 61.7 per cent averaged in the trading month from mid-January to mid-February, it said.

In January the UK received seven LNG cargoes, compared with one cargo in the same month last year.