Prices on the Asian LNG spot market slid for the first time in five weeks, Reuters reported on June 6.

Weak demand in the region saw the average LNG price for July delivery fall to $12.30 per million British thermal units (mmBtu). It marks a slight dip from $12.40/mmBtu a week earlier.

High inventory levels, especially in Japan, which is the world’s second-biggest importer of LNG, have depressed prices.

According to Japanese government data cited by Argus, the country’s utilities have higher stock levels compared to the same time in 2024. Japan’s LNG stocks at its utilities are 1.3% higher than the volume at this time last year and 7.6% higher than the average for the end June for 2020-2024.

And while temperatures are expected to climb higher than seasonal averages in the weeks ahead in Japan and South Korea, the high inventory levels are expected to keep demand weak on the spot market.

Indeed, demand for LNG from the spot market has been low in northeast Asia, but it has also been weak in southeast Asia. The arrival of monsoon season in India has reduced power demand in India.

Moreover, rough seas in the Bay of Bengal have also disrupted LNG operations in Bangladesh, with at least two tankers halting ship-to-ship fuel transfers off Moheshkhali Island amid stormy monsoon conditions.

If conditions worsen, LNG tankers and floating storage regasification units (FSRUs) may be required to be moved to safer locations in deeper waters, which would affect Bangladesh’s LNG imports.

Nevertheless, despite high inventory levels in the region, prices could still tip upward in the coming weeks as a number of key export terminals are slated for scheduled maintenance. Plants in Australia as well as Cheniere Energy’s Sabine Pass, which is the US’s largest LNG terminal, are all slated to go offline in the coming weeks for maintenance activities.