Context:
• Asia’s LNG imports in October 2025 fell YoY → driven mainly by sustained weakness in China (world’s largest LNG buyer).
• Europe’s demand has risen strongly ahead of winter — pulling cargoes away from Asia and keeping spot LNG prices elevated.
Key Highlights:
Data – Asia vs Europe
• Asia LNG imports (Oct 2025): 22.84 million tonnes
– down from 24.39 million tonnes (Oct 2024)
• Asia (Jan–Oct 2025): 225.8 million tonnes (↓ 14.02 mt YoY)
• Europe (Jan–Oct 2025): 101.38 million tonnes (↑ 16.75 mt YoY)
China Demand Weakness
• China imports (Oct 2025): 5.57 mt → lower than 6.47 mt (Oct 2024).
• China’s YoY decline trend continues since Nov 2024.
• Reason: spot LNG > US$10/mmBtu → loses price competitiveness vs pipeline gas from Russia/Central Asia & domestic NG.
• China shifting to long-term contracts which are cheaper.
India Position
• India = Asia’s 4th largest LNG importer.
• India (Oct 2025) → 2.15 mt (↓ from 2.37 mt in Oct 2024).
• India too = a price-sensitive buyer.
Spot Prices
• North Asia spot LNG = US$11.10/mmBtu (week ending 31 Oct 2025).
• Has remained > US$10/mmBtu since April 2024.
Relevant Prelims Points:
• LNG = Liquefied Natural Gas → −162°C, volume reduced ~600x.
• Asia → world’s largest LNG import basin (Japan, China, S. Korea, India).
• Europe’s gas demand surge → post-Ukraine → substituting Russian pipeline gas with LNG.
• Spot LNG = short-term cargo, vs long-term oil-indexed contracts.
Relevant Mains Points:
• LNG flows reflect geopolitics + pricing power → EU’s ability to bid higher reshapes Asian energy security.
• High spot LNG prices → subsidy stress in South Asia; domestic gas + pipeline agreements become strategically more attractive.
• Long-term contracts (Qatar, Russia) provide hedging strategy for Asia.
Way Forward:
• India → accelerate domestic gas production + CGD expansion + strategic gas storage.
• Diversify sourcing portfolios & build long-term LNG supply contracts to reduce spot dependence.