Insight
NE Asia LNG demand slump hits shipping hard
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Falling LNG demand in the traditional major LNG markets of Japan and South Korea, and slower than expected demand growth in China, is particularly bad news for LNG shipping. This is because alternative markets tend to be closer to LNG supply sources requiring less ship capacity to get the LNG to market. Even without lower demand in NE Asia, demand for shipping would have been hit by the start up of new supply in Australia, displacing longer-haul imports from elsewhere. The reduced demand for shipping comes at time when the supply of LNG ships is growing rapidly. The result has been reduced fleet utilisation and short-term charter rates languishing around US$30,000 per day. With a large orderbook of LNG ships still to be delivered, more new Australian LNG supply to come on stream and Japanese and South Korean demand set to fall further charter rates will remain under pressure.
Table of contents
- Executive summary
- Faltering demand in NE Asia
- New LNG supply backs out long-haul imports
- LNG fleet growing rapidly
- Short-term/spot charter rates to remain under pressure
Tables and charts
This report includes the following images and tables:
-
NE Asia LNG imports by country (mmtpa)NE Asia LNG imports by country (tonne-miles)NE Asia LNG imports by source (mmtpa)
-
NE Asia LNG imports by source (tonne-miles)NE Asia tonne-mile demand v fleet capacityNE Asia LNG tonne-mile demand v charter rates
What's included
This report contains:
Other reports you may be interested in
Wallmap
Global LNG Wallmap
Wood Mackenzie has produced a highly detailed Global LNG wallmap, showing LNG shipping routes,liquefaction and regasification terminals.
$550
Insight
At what price is LNG affordable in Asia?
Assessing LNG price affordability across four key Asian markets
$950
Insight
Perspectives - Metals and Mining - July 2025
A cross-commodity outlook
$1,050
