Global liquified natural gas (LNG) prices moderated in CY2023 after achieving life-time highs in CY2022, with domestic consumption expected to grow 6-7 per cent YoY. This was aided by changes in demand patterns across the key consuming nations, including China, EU, Japan, South Korea, and the US, said a report by ICRA.
The LNG demand from China has been subdued amid an economic slowdown, rising pipeline flows from Russia and increasing use of coal. The EU demand, the report by ICRA stated, stabilised after the initial peak, owing to mild winters, austerity measures, and a weak economic environment. The demand from Japan and South Korea was also tepid owing to their increased focus on the use of renewables and nuclear power.
