Latest developments in Asia LNG markets: S&P Global Commodity Insights

1. Asian summer LNG demand to pick up as heat waves sweep Northeast Asia

Asian end-users are expected to ramp up summer LNG procurement activities to meet rising cooling demand as Northeast Asia grapples with unprecedented heat waves.

Multiple regions across northern Asia have reached record-high temperatures in June 2025, with meteorological agencies issuing heat wave warnings for the coming weeks.

Demand from Japan has begun to emerge, as high temperatures have fuelled increased demand for prompt deliveries. Other Asian end-users were on the sidelines amid higher prices.

Read the full insight report here.

2. Trump tariffs could reshape Asian oil, LNG, steel trade flows

US President Donald Trump's move to impose 25% tariffs on "any and all" imports from Japan and South Korea, along with varying rates on 12 other Asian nations, could significantly disrupt critical energy flows and reshape steel trade patterns across the Pacific Rim.

The tariff letters, posted on social media on 7 July 2025, set a 1 August 2025 implementation date but left room for negotiations. South Korea dispatched top officials to Washington to seek a "mutually beneficial" deal, while Japan and Indonesia pursued their own diplomatic channels to address the tariff threats.

Read the full insight report here.

3. Asia weighs LNG supply contingency amid focus on Strait of Hormuz security

Asia's key buyers of Middle Eastern LNG are considering alternative supply sources following the US' strikes on Iran's nuclear sites over the weekend, which has shifted focus to shipping security in the vital the Strait of Hormuz delivery route, sources told Platts 23 June 2025.

The move by importers in India, China, South Korea, and Japan comes as Tehran strengthens its rhetoric surrounding a potential blockage of the Strait of Hormuz, a vital chokepoint through which about 20% of the world's oil and LNG transit daily.

Read the full insight report here.

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Read the article online at: https://www.lngindustry.com/special-reports/31072025/latest-developments-in-asia-lng-markets-sp-global-commodity-insights/