China Emerges as Major Player in Global LNG Oversupply
China's emergence as a reseller of surplus liquefied natural gas (LNG) is exposing the fragile assumptions underlying the current wave of LNG export investment, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
The global LNG market is entering a period of rapid supply growth, with over 274 million tonnes (Mt) of LNG supply expected to enter the market between 2026 and 2031. This represents a 52% increase from the 525Mt capacity in 2025.
China's LNG imports have fallen from 79Mt in 2021 to 66Mt in 2025, representing a 16.5% decrease. The country is now reselling between 17Mt and 19Mt of LNG per year, with the majority going to South Korea, Japan, and the Netherlands.
Major state-owned energy firms China National Offshore Oil Corporation (CNOOC) and PetroChina Company (PetroChina) accounted for 64% of Chinese charterer resales in 2025. The IEEFA estimates that Chinese companies have profited $4.6bn from the resale of US and Australian-sourced LNG between 2021 and June 2026.