China’s LNG imports up 1.6 percent in May

Data from the General Administration of Customs shows that China received 4.86 million tonnes during May, the second-highest monthly volume this year after 6.67 million tonnes in January.

May LNG imports rose compared to 4.64 million tonnes in April, 3.95 million tonnes in March, and 3.86 million tonnes in February.

During January-May, Chinese LNG terminals received 22.76 million tonnes of LNG.

This marks an 8.2 decrease compared to the same period last year, the customs data shows.

Natural gas imports, including pipeline gas and LNG, were nearly flat in May, reaching 10.10 million tonnes.

The data from the General Administration of Customs shows that China’s pipeline imports dropped 0.3 percent year-on-year to 5.25 million tonnes last month.

During January-May, pipeline imports dropped 1.5 percent to 23.84 million tonnes.

GECF said China’s LNG imports declined in March and April, mainly due to reduced supply from Qatar amid the Middle East conflict, while ample domestic supply and elevated spot prices limited the need for replacement purchases.

The country was also reloading LNG volumes in March and April and sending them to other Asian countries as prices soared.

Reports suggest that China has been ramping up LNG imports since May ahead of the summer months amid increased demand for cooling and electricity.

It is also worth noting that the US and Iran just signed an initial agreement that includes reopening the Strait of Hormuz.

However, market participants await official information regarding the full reopening of the Strait of Hormuz and the restart of Qatari LNG production and shipments.