China Shifts from LNG Buyer to Global Reseller as Market Faced with Record Oversupply

China's role in the global liquefied natural gas (LNG) market is shifting from being one of the largest buyers to a significant reseller, according to the Institute for Energy Economics and Financial Analysis. This shift reflects flat domestic demand, an accumulation of long-term supply contracts, and state-owned enterprises investing in LNG shipping and trading.

Chinese LNG imports declined from 79 million tonnes in 2021 to 66 million tonnes in 2025 and are projected to fall further to 63 million tonnes in 2026. The country's heavy contracting between 2021 and 2023 created a surplus of contracted volumes, with resales by vessels chartered by Chinese companies amounting to 8.4 million tonnes in 2025.

Flexible long-term contracts, especially from Australia and the United States, are driving this trend. The Institute estimates that Chinese buyers have earned $4.6 billion from resales of Australian and United States LNG since 2021. China's surplus is expected to continue and possibly expand, with LNG contracts projected to reach 114 million tonnes by 2028.