China posts record LNG imports in February

Imports of liquefied natural gas into China rose 15 percent year on year to 5.5 million tonnes in February. This is the highest figure ever recorded for the month and the first time since 2021 that monthly imports have set a new record. The increase was driven in part by lower spot-market prices, which encouraged additional purchases of the fuel, Bloomberg reported, citing ship-tracking data.

Spot LNG prices fell sharply this winter. This was partly due to mild weather and high inventories in Asia and Europe, alongside ample supply.

China’s largest energy producer, China National Petroleum Corp., estimates that LNG imports will rise by 8.1 percent this year. They increased by 12.6 percent last year.

Price remains key to how much users switch to gas, said Tuan Zhaofang, head of the gas division at CNPC’s Economics and Technology Research Institute. Falling LNG prices, he said, have made gas more competitive with diesel.

Last month, Shell estimated that global LNG trade volumes rose by 1.8 percent to 404 million tonnes last year and that, according to its latest estimates, LNG demand could reach 625 to 685 million tonnes by 2040. China is likely to drive LNG demand growth this decade, Shell said, as its industries seek to reduce carbon emissions by switching from coal to gas. China’s coal-based steel sector produces more emissions than Britain, Germany and Turkey combined. Gas therefore plays a crucial role in tackling one of the world’s largest sources of carbon emissions.