Chinese, Japanese and South Korean demand for Liquefied Natural Gas (LNG) is expected to fall owing to the ongoing covid-19 crisis.
International Commodity Intelligence Services (ICIS) LNG Analyst, Tom Marzec-Manser, said: “The forecast weakness in over half of the world’s LNG import market for 2020 will only exacerbate the current oversupply and keep pressure on key natural gas and LNG prices.
“While Japan and South Korea have been contracting as LNG markets for a few years, a shrinking Chinese market will cause major headaches for those producers looking to find demand for their increasing output.”
While China’s demand is predicted to fall to 58.1 million tonnes, down 5.2% year on year, Japan and South Korea are expected to witness a decline of 1.1% and 4.7% respectively.
In 2019, the three nations collectively imported nearly 51% of global LNG supplies.