China LNG Imports Head for 10th Consecutive Year-on-Year Decline

China’s liquefied natural gas purchases are expected to fall year-on-year for a 10th successive month in August, according to ship-tracking data compiled by Kpler. The analytics firm projects 6.04 million tonnes of LNG will reach Chinese terminals this month, the highest volume since January but still below the level recorded in August 2024. Analysts attribute the continued weakness to elevated spot prices. Cargoes for delivery to North Asia averaged $11.40 per million British thermal units in the week to 22 Aug., well above the sub-$10/mmBtu threshold traders say is needed to restore Chinese spot demand. As a result, imports remain dominated by long-term contract volumes, while discretionary spot purchases have been curbed. Soft Chinese buying underscores the imbalance in the global LNG market, where Europe’s earlier restocking and steady demand from Japan and South Korea have kept prices firm despite a regional oversupply. The subdued appetite has also prompted other buyers, such as Pakistan, to seek renegotiation of long-term supply agreements.