After months of sluggish activity, China’s liquefied natural gas (LNG) imports rebounded in August 2025, fueled by declining global LNG prices and the urgent need to rebuild inventories. This marks a major shift from the first half of the year, when imports were down 20% due to weak demand and alternative gas supplies.

China’s LNG
China’s LNG


Key Highlights of China’s LNG Imports Recovery

1. Imports Above the Five-Year Average

The 30-day moving average of LNG imports in August has exceeded the five-year average. Buyers such as Beijing Gas Group and Zhejiang Energy have already secured shipments for September, signaling renewed appetite for LNG cargoes. 


2. Why Imports Declined Earlier in 2025

China’s imports fell sharply in H1 2025 because of:

Mild winter weather reducing heating demand.

Greater reliance on pipeline gas from Russia and higher domestic production.

Price-sensitive decisions by buyers, who resold LNG to Europe and other Asian markets.

 

3. Price-Driven Recovery

In August, spot LNG prices in Northeast Asia dropped to the high-$11s/MMBtu, their lowest in months. This allowed Chinese buyers to take advantage of affordable cargoes. 


4. Rising Demand Factors

Industrial rebound boosted natural gas demand.

Heatwaves across China increased electricity and cooling needs.

Storage replenishment became a priority as facilities had limited injections after a mild winter. 


LNG Price Context

Global Natural Gas Price Drop: Prices fell 17.7% in the past month, making LNG more affordable for importers. 

Spot JKM Prices: Early August levels for September delivery were in the high-$11s/MMBtu, attractive compared to earlier peaks. 

Market Implications

  1. Tighter Global LNG Market: China’s rebound adds competition for LNG cargoes, especially with Europe still active in the market.

  2. Strategic Storage Filling: By refilling storage, China reduces exposure to potential winter price hikes or supply disruptions.

  3. Short-Term Stability, Long-Term Uncertainty: While imports may remain strong in Q3 2025, global prices and demand fluctuations will continue to influence buying patterns.


Outlook

Short-Term (Q3 2025): Imports expected to stay elevated if prices remain low and industrial demand continues.

Medium-Term: China may balance LNG with pipeline gas flexibility, depending on geopolitical factors and market prices.

Global Impact: A stronger Chinese LNG presence could lead to higher spot prices in Asia and Europe later this year.


FAQ's

Q1: Why did China’s LNG imports decline earlier in 2025?
A1: Imports dropped due to mild winter demand, increased pipeline gas from Russia, higher domestic output, and resale of LNG cargoes to Europe and Asia for profit.

Q2: Why are imports rising again in August 2025?
A2: Falling LNG prices, rising industrial activity, summer heatwaves, and the need to refill storage facilities have boosted imports.

Q3: How do current LNG prices affect China’s imports?
A3: Spot LNG prices in Northeast Asia fell to the high-$11s/MMBtu in August, making purchases cost-effective compared to earlier in the year.

Q4: What impact will China’s LNG rebound have on global markets?
A4: Increased Chinese imports could tighten global LNG supply, potentially raising spot prices in both Asia and Europe.

Q5: What is the outlook for China’s LNG imports in 2025?
A5: Imports are expected to stay strong in the short term as long as prices remain low, but long-term demand will depend on economic growth and gas supply alternatives.