LNG Demand Down, Report Says

Global demand for liquefied natural gas (LNG) fell from March to April 2013, according to statistics compiled by energy analysts PIRA.

Actual end user gas demand in countries importing LNG falls by even more, the analysts found. Separately, in Europe, gas demand has dropped to levels not seen since 2002/2003, they say.

PIRA’s analysis found that a positive month-on-month change in LNG demand during the shoulder months of the second quarter does not even start until June, which is already well into the counter-seasonal buying period in South America, the Mideast, and Taiwan.

While regional prices rose month-on-month, basis differentials weakened in most markets. Gas prices must ration supply to ensure storage climbs to adequate levels by end-October. This dynamic creates a mixed backdrop for regional prices in the future, PIRA says.

See also: IEA Downbeat on European Gas