LNG storage tanks in Tianjin
China steps back from fresh LNG contracts
The move could have major ramifications for the LNG sector
Discussion of the outlook for LNG demand growth almost always begins with China and ends with just about everyone else. China already accounts for 20% of global LNG buying and surpassed Japan in 2023 as the largest buyer. These details highlight why it is so important that China is not signing long-term LNG contracts in 2024. China has signed new contracts amounting to less than 2mt/yr so far this year, despite a wide range of offers coming from LNG producers and portfolio players being faced with significant amounts of unsigned volumes. Why this intermission is occurring is not totally clear and does not necessarily suggest China is done buying LNG for the foreseeable future. For well
Also in this section
2 June 2025
More than anything else, weak Chinese gas demand is providing relief to EU consumers, but it is uncertain how long this relief will last
30 May 2025
Energy majors argue transition debate has started to factor in the complexities of demand shifts and the wider role for gas
29 May 2025
Sovereignty is the watchword for the new government, but there are still upstream opportunities for those willing to work closely with the state
29 May 2025
A cautious approach to coal-to-gas switching offers lessons to others who are looking to balance cost with cleaner energy
