China’s liquefied natural gas (LNG) imports fell to their lowest level in five years last month, as weak domestic demand and rising European prices diverted cargoes. According to data from Kpler, China imported just 4.5 million tons of LNG, pushing the country behind Japan as the world’s largest importer for the second consecutive month. This marks the lowest level of LNG imports since early 2020, when the COVID-19 pandemic led to widespread factory shutdowns and a significant decline in energy demand, forcing Chinese buyers to invoke force majeure clauses.
The decrease in imports is attributed to several factors, including a mild winter, sufficient storage levels, and subdued industrial demand. Wei Xiong, head of gas research at Rystad Energy, noted that China’s abundant LNG inventories are likely to continue suppressing import levels until the conclusion of the heating season.
In response to higher global prices, particularly in Europe, some Chinese gas companies have been reselling spot LNG cargoes in recent months. Notably, the Binhai LNG terminal in Jiangsu province re-exported a shipment last month to the Boryeong facility in South Korea, as confirmed by ship-tracking data from Bloomberg. The terminal also re-exported cargoes in both January and December.
Looking ahead, Xiong anticipates that reselling activity will remain strong in 2025, especially with the imposition of a 15% tariff on US LNG by China.
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