U.S. liquefied natural gas (LNG) exports are witnessing unprecedented levels in 2025, with projections for increased demand due to rising temperatures in key Asian markets. Summertime forecasts indicate that average temperatures in Japan, South Korea, and China will exceed normal levels, driving up electricity consumption as air conditioning usage escalates. This surge in power demand is expected to prompt utilities to maximize generation capacity, particularly from natural gas plants reliant on imported LNG. Forecasts reveal that East Asia will experience high temperatures and humidity over the next two months.
In Japan, the second-largest LNG importer after China, average temperatures are estimated to be around 6% above the long-term average until late August. Neighboring regions such as South Korea, Taiwan, Hong Kong, and several cities in China will likely see similar weather conditions, intensifying the reliance on air conditioning systems and increasing electricity demands that could stress local power grids. Historically, Asian electricity producers adapt to heightened summertime electricity demand, raising output levels accordingly. Data from last year indicates that from June to August, electricity demand surged approximately 9% above the annual average.
To meet this increased demand, utilities primarily turned to fossil fuel plants, particularly those utilizing natural gas and coal. During the last summer, generation from gas and coal averaged 5% higher than typical monthly figures. Asian LNG importers usually secure greater LNG shipments during the months leading up to peak demand. Between 2021 and 2024, U.S. LNG exports to Asia during May through July averaged around 7.8 million metric tons monthly, underscoring the critical role of LNG as a power source during this season.
The price of LNG will be a crucial factor influencing future purchases in Asia, particularly as U.S. LNG export prices have increased significantly. While European markets represented a major share of U.S. LNG exports earlier this year, fluctuations in European demand will also affect global pricing and could lead to renewed interest in Asian markets. As Europe’s gas storage levels remain lower than in previous years, the timing of restocking could significantly impact LNG demand and prices in Asia. Consequently, U.S. LNG export volumes are likely to remain strong in the near future, bolstered by both regional heating needs and European market dynamics.