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China ramps up LNG imports amid summer heatwave

Bloomberg Markets •
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China’s liquefied natural gas imports have surged as the country ramps up buying to meet higher electricity demand during the summer heatwave. The 30‑day moving average for deliveries climbed to 178,000 tons a day, the highest since early February, when the war in the Middle East began.

State‑owned buyers such as Cnooc Ltd. have stepped up activity, taking seven to ten cargoes monthly to replace lost Qatari supply. Traders note that the shift follows the war’s choking of Persian Gulf shipments, while Canada, Malaysia and Russia have stepped in to fill the gap.

China’s uptick comes as Europe’s 30‑day moving average for LNG deliveries falls 19% from a year earlier, dropping since mid‑March. The surge could spark stiffer competition for cargoes between Asia and Europe ahead of winter restocking, as China, the world’s largest buyer, pulls in more volume.

Private firms like Guangdong Jovo Energy Group Co Ltd. also seek cargoes, while second‑tier Zhejiang Energy International Ltd. bought a July cargo last month. The turnaround contrasts with last year’s sluggish demand, when China leaned on cheaper pipeline gas and robust inventories, alongside coal and renewables, to meet peak summer usage.