Global LNG deliveries extended year-on-year decline into July mostly due to slower demand in Latin America and Northeast Asia. Preliminary figures based on tanker tracking data indicated aggregate LNG deliveries across the globe fell to 29.2 million tons last month, compared to 29.9 million tons a year earlier. The above figures reflect a deeper-than-expected fall in July’s LNG deliveries. The LNG market shrank for the first time in June after consistently expanding since 2015.
Demand for LNG was slower in Latin America in June due to competition with pipeline gas and reduced gas consumption caused by the coronavirus pandemic. Brazil has not taken any LNG cargoes since May, while Mexico’s LNG imports fell by more than 50% year-on-year in July. Argentina and Chile imported higher volumes of LNG last month but cannot offset slower demand from Brazil and Mexico.
Northeast Asian LNG demand also decreased to below the year-ago level. However, China’s LNG imports rose by around 800,000 tons from a year earlier, largely offsetting the decline in combined deliveries to Japan, South Korea, and Taiwan. LNG deliveries to China in July were about 6% above the January-June average and 4% higher than in the previous 12 months.
