Free Trial

Chinese LNG Re-Exports Picked Up in 2023


Chinese LNG re-export activity has picked up this year and is likely to grow through this winter, amid global volatility and arbitrage opportunities according to ICIS analyst Fei Xu.

  • China is likely to have re-exported 14 LNG cargoes in January-October 2023, compared with eight cargoes during the same period last year, according to ICIS’s LNG Edge trade flows.
  • China LNG re-exports will eventually increase terminal utilization and flexibility in balancing Chinese demand and the wider Asia region, Xu wrote.
  • Chinese re-exports surged when lucrative arbitrage opportunities emerged in 2022 and re-exports continue to remain profitable this winter, as the ICIS EAX, the North Asia spot index is estimated to hover around $16/MMbtu, whereas the estimated average term LNG cost into China would be $10 to $12/MMbtu. ICIS arbitrage calculator suggests that re-selling an LTC cargo to the Asian markets remains profitable at the Yangpu terminal in China, with margins varying from $1.5/MMbtu to $4/MMbtu.
  • Thailand presents ample potential for achieving the highest profit margin, closely trailed by Singapore and Taiwan, Xu added.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.