In the past month, the volume of China’s imported liquefied natural gas (LNG) fell to its lowest level in the last five years. Data shows that against the backdrop of increased supplies and falling prices for gas, Chinese companies have reduced the volume of purchases of liquefied natural gas.
The information agency 'Xinhua' reported that in July 2021, China imported 6.68 million tons of LNG, which is 8.7% less compared to the previous month and 1.5% lower than in July of the previous year. The sharp decrease occurred after a peak in May, when China increased its import volume to 8.73 million tons.
The main factors contributing to the reduction in import volume include rising gas supplies from Chinese companies and falling prices for LNG in the global market. The decline in demand for LNG in China is also linked to higher temperatures in mid-summer, which diminishes heating demand.
According to analysts, the decline in the volume of LNG imports suggests a weaker demand for gas in China, reflecting a general trend of decreasing energy consumption in the country.
As for the outlook, experts expect that the Chinese demand for LNG may rise in the second half of the year, especially with the approach of the heating season and peak gas storage season.
China remains the largest energy consumer in the world, and the dynamics of its LNG imports are an important indicator for the global natural gas market.
