An extremely tight LNG market that pushed spot prices to $65-70 per mmBtu last year has rapidly transformed into a supply glut thanks to a combination of abundant supply and lower demand, OilPrice reports. 

With Freeport LNG resuming exports in February, last month’s total exports rose to the highest reading on record (36 million tons), prompting some cargoes to idle at sea for weeks before finding a home. European gas inventories are 56% full and should the upcoming months stay within historical weather averages stock refilling may be completed as early as August. With JKM LNG spot prices now dropping to $12 per mmBtu, downside pressure on liquefied gas is also coming from weak Chinese demand as imports in Q1 turned out to be even lower than in Q1 2022, coming in at 16.5 million tonnes.