LNG imports into China, the world’s top buyer of the super-chilled fuel, continue to be weaker than the prior-year month for the eighth consecutive month in June, according to ship-tracking data from Kpler cited by Bloomberg.
China is on track to import about 5 million tons of LNG this month, per Kpler’s data. This volume, if confirmed, would be a 12% decline compared to June last year.
Chinese demand for overseas LNG has thus extended its year-over-year decline for the eighth straight month amid rising pipeline gas flows and domestic production.
This year’s milder winter, weak industrial demand, and higher gas pipeline imports are set to result in the first decline in China’s LNG imports since 2022.
Last year, China imported a total of 76.65 million metric tons of LNG. This year, the volume is set to be between 6% and 11% lower compared to 2024 levels, according to estimates by research firms compiled by Reuters.
LNG import demand in China has been weaker this year amid comfortably full winter inventories. Demand in the spring has been weighed down by weaker consumption growth in the industrial and chemicals sectors.
Even if there is a rebound in demand in the latter half of 2025, China is still set for an annual decline in LNG purchases, analysts say.
Part of the weaker LNG imports is also attributable to increased gas pipeline supply from Russia and central Asia, as well as rising domestic natural gas output. These two sources of gas supply are cheaper than the LNG option.
China’s weakness in LNG demand would be welcome news for the rest of Asia and Europe this summer and going into the winter.
Asia’s currently tepid LNG demand is set to become robust during the summer months as models suggest higher-than-usual temperatures across north Asia.
Increased demand would be a boon to U.S. LNG exporters, which are also ramping up supply with new export plants.