Liquefied natural gas (LNG) demand across Asia has weakened considerably in recent weeks, dragging down forecasts for global consumption this year and leaving less competition for European buyers eager to displace Russian energy supplies.

“We are entering into negative territory,” said analyst Gergely Molnar of the International Energy Agency (IEA). The global energy watchdog expects worldwide gas consumption growth to dip below zero this year. Russia’s invasion of Ukraine has created a “large degree of uncertainty” for demand, he told NGI. 

Commodity prices have skyrocketed and tamed the appetite for expensive LNG, particularly in Asia, where a mild winter also cut into consumption. LNG deliveries to Europe are currently fetching the best price for sellers. As to when...