China’s imports of natural gas, including via pipeline and LNG cargoes, increased by 14.3% in the first half of 2024 compared to the same period of last year.
China imported 64.65 million tons of natural gas in the first six months of 2024, LNG Prime reported on Friday, citing data from China’s General Administration of Customs. The Chinese import bill for the first half fell by 0.8% to $31.7 billion, the data showed, as LNG prices were lower than year-ago levels early this year.
Key points from the import data and market dynamics include:
Increased Imports: The first six months of 2024 saw a substantial rise in natural gas imports, largely driven by efforts to stockpile for the summer and take advantage of lower international prices.
Monthly Growth Variations: June 2024 imports showed only a modest increase of 0.4% compared to June 2023.
Early Year Surge: China boosted its natural gas imports in the period January to April, as it looked to stockpile fuel for the power plants ahead of the summer amid international prices that were half last year’s levels in the first four months of 2024. Chinese imports of natural gas were estimated to have jumped by 21% between January and April compared to a year earlier.
Price Fluctuations: Asian benchmark LNG prices averaged slightly over $9/MMBtu in Q1 2024, down from $18/MMBtu in Q1 2023. However, prices rose to over $12/MMBtu by late spring and early summer, leading to a decline in spot demand.
Potential Record Year: There’s an expectation that China might surpass its 2021 record of 78.8 million metric tons of LNG imports, driven by industrial and commercial demand. In 2022, imports had dropped to around 71.2 million metric tons due to soaring prices following the Russian invasion of Ukraine.
These dynamics highlight China’s strategic approach to managing its energy needs, taking advantage of favorable pricing conditions while preparing for seasonal demand fluctuations. The significant increase in the first half of 2024 also underscores the country’s ongoing reliance on natural gas, particularly LNG, to meet its energy requirements.
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