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