LNG Market strained by outages

LNG Special Report: Market strained by outages and rising Egyptian demand, subduing Asia spot activity

US and Malaysian outages offset supply growth, keeping May’s global LNG output 1.1 mt below last month
Weak NE Asian demand closed the Europe-Asia arbitrage, leaving Europe’s storage refill needs as the main price support
EU gas storage tops 50%; relaxed refill targets offer flexibility but summer imports must still rise by 2.5 mt (>30 cargoes) vs 2024
Egypt’s growing LNG and fuel-oil demand adds competition for Atlantic Basin summer cargoes
Shipping oversupply persists, with 60 vessels idle for over 40 days
USTR compromise eases export-licence revocation risks, but compliance feasibility remains uncertain

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US and Malaysian outages offset supply growth, keeping May’s global LNG output 1.1 mt below last month
Weak NE Asian demand closed the Europe-Asia arbitrage, leaving Europe’s storage refill needs as the main price support
EU gas storage tops 50%; relaxed refill targets offer flexibility but summer imports must still rise by 2.5 mt (>30 cargoes) vs 2024
Egypt’s growing LNG and fuel-oil demand adds competition for Atlantic Basin summer cargoes
Shipping oversupply persists, with 60 vessels idle for over 40 days
USTR compromise eases export-licence revocation risks, but compliance feasibility remains uncertain