Asia's demand for Liquefied Natural Gas (LNG) increased in the week ending January 30. The increase in LNG demand in Asia stemmed from improvements in market sentiment, with China and India both showing modest increases. The two countries showed caution when returning to the market due to expectations of less strained global supply chains, lower than expected global prices for LNG, and an increase in the amount of LNG being produced globally. In China, demand for LNG was driven by increased demand for electricity and urban gas, as well as interest in launching the yuan-denominated futures contracts for LNG. Demand for LNG in India was driven by fertiliser, city gas, refining and power generation; however, price sensitivity was still an issue. The improvement in LNG demand in both markets of approximately 2% overall confirms that these two markets are major influencers of the overall growth of LNG globally.
