China Becomes Global LNG Reseller

China has transformed from the world's largest liquefied natural gas (LNG) buyer to a major global reseller, positioning Chinese companies as significant competitors to traditional suppliers. Over the last decade, China's LNG imports have fallen from 79 million tonnes in 2021 to 66Mt in 2025 and are expected to decline further to 63Mt in 2026.

The country has a growing surplus of contracted volumes, with resales by Chinese-chartered vessels reaching 8.4Mt in 2025. The Institute for Energy Economics and Financial Analysis (IEEFA) estimates that total Chinese LNG resales that year were likely between 17Mt and 19Mt, with South Korea, Japan, and the Netherlands as the leading destinations.

Chinese buyers have profited USD4.6 billion from Australian and US LNG resales since 2021, largely due to flexible long-term contracts. The surge in flexible volumes from Australia has enabled China to optimize its LNG portfolio across the Pacific region, while US supply has been leveraged to capitalize on arbitrage opportunities in the Atlantic region.

With LNG contracts expected to reach 114Mt by 2028 and demand constrained by cheaper alternatives, China is likely to remain overcontracted in the medium term. Several independent demand projections expect an LNG surplus ranging between 11Mt and 48Mt by the early 2030s.