China, the world’s largest liquefied natural gas importer, reported a drop in its LNG imports in June, marking the first monthly drop this year, according to customs data.
Data from the General Administration of Customs shows that the country received 5.62 million tonnes during the last month, down 4.6 percent year-on-year.
During January-June, China imported 38 million tonnes of LNG, a rise of 13.9 percent year-on-year, the data shows.
This also compares to 39.78 million tonnes China imported during January-June in 2021, which was a record year for China’s LNG imports with 78.93 million tonnes.
China’s growth in LNG imports slowed down in May and the country received 6.57 million tonnes, up by 3.4 percent compared to the previous year.
In January this year, China’s LNG import terminals took 7.25 million tonnes of LNG, up by 22.9 percent year-on-year, in February LNG imports rose by 15.2 percent to 5.95 million tonnes, in March LNG imports increased by 25.1 percent to 6.65 million tonnes, while in April LNG imports increased by 31.5 percent to 6.22 million tonnes, customs data previously showed.
Natural gas imports, including pipeline gas, during the last month reached about 10.42 million tonnes, rising just 0.4 percent compared to some 10.38 million tonnes in June 2023.
China’s pipeline imports rose 8.4 percent year-on-year in June to 4.80 million tonnes.
Chinese buyers were buying spot LNG cargoes during this year due to low JKM prices.
Asian spot LNG prices were below $10/MMBtu from the second half of January and until the second half of April.
However, front month JKM rose in May for the first time this year above $12/MMBtu and it remains to be above $12/MMBtu.
China’s LNG imports rose 12.6 percent in 2023, and the country overtook Japan as the world’s largest LNG importer.
The country received about 71.32 million tonnes in the January-December period.
This is a rise compared to about 63.44 million tonnes of LNG in 2022 when imports dropped due to very high spot LNG prices and Covid lockdowns.
China’s 2023 LNG imports dropped compared to record in 2021.