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Rising Asia LNG Prices May Curb Chinese Demand: ENN

LNG

An increase in spot LNG prices in Asia could hamper Chinese LNG imports from Aug-Oct, according to ENN.

  • Spot LNG prices in North Asia were around $11/MMBtu according to Bloomberg
  • While prices remain elevated, Chinese spot buying may slow until inventories deplete and require restocking.
  • China’s average LNG import price could average 4,105 yuan/ton, in August, and fall to 4,023 yuan and 4,053 yuan in September and October, ENN estimated
  • Industrial demand for gas in China remains depressed, amid a slow economic recovery.
  • Chinese imports rose in H1 on the year, up 7%. However, levels in 2022 had fallen due to zero-covid policies squeezing demand.

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