Page 4 - AsianOil Week 26

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LNG import volumes to Asia fall in first five months
PERFORMANCE
ASIA’S top three importers, Japan, China and South Korea, imported 12.97mn tonnes of LNG in May, data from the three states show.
is is down marginally from the 13.33mn tonnes imported in the same month of 2018. e total imported over the rst ve months of the year by the three countries reached 74.04mn tonnes, down from 75.41mn tonnes in the same period of 2018.
The cost of imports in May was $6.16bn, down from $6.55bn a year earlier. e total cost over the January to May period was $39.9bn, up from $35.78bn.
Japan imported 5.57mn tonnes in May, down from 6.41mn tonnes in 2018. e coun- try’s customs data reveal that 131,000 tonnes came from the US, 1.37mn tonnes came from Asian states, 793,000 tonnes from the Mid- dle East and 534,000 tonnes from Russia. Asian, US and Middle Eastern supplies were down from the previous month, while Russia increased volumes.
Volumes from the Middle East made a sig- nificant decrease from May 2018, when sup- plies were 1.44mn tonnes. During the rst ve months of 2018, this area provided 7.94mn tonnes to Japan, but had fallen to 6.09mn in the same period of 2019.
China imported 4.43mn tonnes in May, according to its customs data, released this week. is is an increase from 2018, when it received 4.15mn tonnes in May, and from 2017, when it received 2.91mn tonnes.
Every month this year has seen China import more LNG than it did in the respective month in 2018. e total volume in 2019, thus far, reached 23.96mn tonnes, from 19.96mn tonnes in 2018.
South Korea imported 2.97mn tonnes in May, marginally up from the 2.77mn tonnes it imported in the same month of 2018. e total received in 2019 reached 16.7mn tonnes, down from the 18.94mn tonnes during the same ve months of 2018.
Costs in May reached $1.43bn, and $9.18bn for the year thus far. Costs for the first five months of 2018 reached $9.28bn.
Extrapolating data from the first five months for the three Asian importers over the entire year would suggest South Korea will import 40.68mn tonnes, China 57.5mn tonnes and Japan 80mn tonnes.
While LNG spot prices have fallen, this does not show the real prices for most Asian consumption. As senior fellow in the energy programme at the Center for Strategic and Inter- national Studies (CSIS), Nikos Tsafos, pointed out recently, around two thirds of the gas con- sumed in Asia was priced with some connection to oil in 2018.
Platts’ JKM price is becoming increasingly important, he noted, but this is not an Asian LNG price. “It is a spot price, and until existing long-term contracts are converted to JKM or some other marker, it will be important to main- tain that distinction in how we think and talk about Asian LNG prices.”™
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Import volumes
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w w w . N E W S B A S E . c o m Week 26 03•July•2019
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