China’s LNG Imports Slump to 5-Year Low | OilPrice.com
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Breaking News:
Liquefied natural gas imports to China slumped to the lowest since 2020 in February, at 4.5 million tons, Kpler data showed, as reported by Bloomberg.
A relatively warm February contributed to the weaker demand, which led to China slipping to the global number-two spot in LNG imports, overtaken by energy-hungry Japan. In addition to the weather, demand in China was also weaker due to lower industrial activity and ample gas in storage.
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Last year, China saw a surge in LNG and pipeline gas imports as it sought to fill its storage caverns. Over just the first half of the year, total natural gas imports saw an annual increase of 14.3%, reaching 64.65 million tons. After the rush to fill storage, imports of natural gas weakened as facilities were full at capacity.
Meanwhile, the introduction of a 15% retaliatory tariff on U.S. imports of LNG, on the other hand, would affect future flows of the energy commodity from and into the world’s largest energy importer.
The tariffs, triggered by President Trump’s introduction of an additional 10% tariff on all Chinese imports into the United States, are widely expected to affect global energy markets. China may stop buying U.S. LNG on the spot market and seek to swap American cargoes from elsewhere after the tariffs went into effect.
Chinese gas buyers could also become more hesitant to commit to long-term contractual supply for U.S. LNG from projects expected to make final investment decisions in the coming years, analysts and industry representatives say.
If the U.S.-China trade dispute escalates, Chinese buyers may not be willing to enter into long-term agreements to buy American energy. This could undermine one of the top priorities of the Trump Administration – boosting LNG exports to reduce the U.S. trade deficit and increase geopolitical influence.
By Irina Slav for Oilprice.com
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