2 days ago
China’s August LNG Imports Fall as High Prices Weigh Demand
China is expected to buy less liquefied natural gas in August than it did last year.
Ship-tracking data estimates that imports will fall by 18%.
LNG has become much more expensive than it was last August.
Because of the higher prices, some factories and other industrial users are using less gas.
Conflict involving the United States and Iran has disrupted LNG shipments through the Strait of Hormuz.
That waterway usually carries a large share of the world’s LNG shipments.
China is looking for more gas from countries such as Russia and Malaysia.
A colder winter or a change in the conflict could cause Chinese demand to rise again.
China’s LNG imports are estimated at about 5.2 million tons in August, down 18% from a year earlier.
Asian LNG prices averaged about $21 per million British thermal units, compared with $12 last August.
Higher prices have reduced consumption among price-sensitive industrial users, according to Kpler analyst Nelson Xiong.
Disrupted LNG traffic through the Strait of Hormuz has pushed China to seek more supplies from Russia and Malaysia.
China’s 2026 LNG imports are forecast at about 61.3 million tons, below last year’s 68.4 million tons.
- Who
- China, LNG suppliers, and price-sensitive industrial users; Kpler provided the import estimates.
- What
- China’s August LNG imports are expected to decline as higher prices reduce demand.
- Where
- China and Asian LNG markets, with shipping disruptions centered on the Strait of Hormuz.
- When
- August; the forecast also covers China’s total LNG imports for 2026.
- Why
- Higher LNG prices and disrupted shipments linked to the conflict between the United States and Iran have weakened demand and affected supply routes.
Key facts
- Estimated August imports
- About 5.2 million tons
- Year-on-year change
- 18% lower than August of the previous year
- Average Asian LNG price
- About $21 per million British thermal units in August, versus $12 last August
- Last year’s Chinese imports
- 68.4 million tons
- 2026 import forecast
- About 61.3 million tons
- Alternative suppliers
- Russia and Malaysia
- Potential demand boosters
- A colder-than-expected winter, slower domestic gas production recovery, or a resolution to the United States-Iran conflict
Sources
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