LNG Special Report: As Middle East tensions ease, summer dynamics across China and Europe define the market
Easing Middle East tensions are influencing summer price trends, while diverging demand patterns across China and Europe are reshaping the market landscape.
09 July, 2025
Key Takeaways
- China’s LNG demand remains particularly subdued in northern regions due to strong domestic production and piped imports. In contrast, southern provinces’ LNG arrivals have rebounded to 2024 levels
- South Korea forced into spot market to restock, after entering Q2 with low LNG inventories
- South America seasonal demand trends diverge: Chile’s LNG imports decline amid gas-on-gas competition, while Argentina’s June imports increase as southern hemisphere winter begins
- New FLNG projects are showing much-improved operational reliability
- Geopolitical risks continue to underpin LNG charter rates, even in a well-supplied vessel market: 174k cbm rates recently hit an eight-month high
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