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Monday, June 8, 2020

Global Demand For Liquid Natural Gas (LNG) Remains Strong

Global liquid natural gas 
(LNG) demand has has not 
been hit by COVID-19,
especially in Asia.

Asian nations have been 
taking advantage of low prices.







Oil demand has plunged 
as COVID-19 spread globally.  
because of the sudden stop 
in transport related demand, 
particularly airplanes.

Residential demand
for natural gas was not 
affected much.

Asian demand had been
the primary driver
of global LNG demand.

But Asian demand growth 
slowed a lot in 2019,
and the world seemed
over-supplied with LNG.

Then Asian LNG demand 
in the first four months
of 2020 was actually
4% above 2019, despite
the COVID-19 pandemic.

It's possible LNG cargo 
deliveries were 
locked in with contracts, 
forcing Asian buyers 
to fill available storage 
capacity during their 
COVID-19 lockdowns.

But Chinese buyers 
are very active in the 
spot market when there
are record and near record 
low prices.

Storage data from China 
may not be reliable, but we 
do know how much LNG
they are buying.

And we know Chinese 
LNG demand drives 
Asian demand.

And we've got LNG to sell !


It is surprising the UK 
and many EU nations 
continue to focus on 
expensive, intermittent
renewable energy, 
instead of taking 
advantage of the 
low prices for LNG, 
as Asian nations 
have been doing.