Asian LNG buyers continue to snap up cheap cargoes as a mild winter in Europe has left storage inventories there high and more vessels are diverting to the region. But as spot prices move higher, buying activity is already slowing. 

As temperatures have increased in the last week in North Asia, “we seem to be entering a low demand season in which additional buying could be limited,” Kpler analyst Go Katayama told NGI.

Companies in South and Southeast Asia have stepped up buy tenders with spot prices hovering below $10/MMBtu. Kpler expects strong demand to continue in Thailand, where a recent heatwave above 104 degrees F has resulted in robust natural gas demand to meet power needs regardless of prices. 

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