Chinese LNG imports set to falter as fuel is priced out of market [Gas in Transition]

Chinese LNG imports set to falter as fuel is priced out of market [Gas in Transition]

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Natural Gas News
Chinese LNG imports set to falter as fuel is priced out of market [Gas in Transition]

Summary

An uptick in China’s LNG imports will be short-lived as Chinese demand for seaborne shipments will be limited by higher spot prices and expanding pipeline deliveries, although there is potential for opportunistic buying when the weather turns colder. [Gas in Transition, Volume 3, Issue 6] by: Shi Weijun

China may struggle to sustain a recent surge in LNG imports over the summer, as record deliveries of Russian pipeline gas and a recent spike in Asian LNG prices will reduce the attraction of the fuel. But some uncertainty over piped gas exports from Central Asia could provide an opening for more LNG takes later this year. China’s LNG imports in May increased year/year for the fourth consecutive month to 6.41mn metric tons, according to customs data released on June 18. LNG receipts last month clocked growth of 31.5%, the biggest year-on-year gain since May 2021. It would be tempting to view last month’s growth as evidence that China – the world’s biggest LNG market – is finally showing signs of a revival. But the increase was flattered by a weak comparative base, as LNG imports in May 2021 were dismal. Meanwhile the country’s pipeline gas imports edged up by 2% in May, a sharp deceleration from growth of 12.6...