China Shifts from LNG Buyer to Reseller Amid Historic Oversupply
China's transformation from the world's largest LNG buyer to a competing reseller has been documented in a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The country's growing surplus of liquefied natural gas (LNG) is being managed through resales abroad, driven by plateauing domestic demand and a structural pivot by state-owned enterprises into LNG shipping and trading.
According to the report, China's LNG imports have fallen from 79 million tonnes in 2021 to 66Mt in 2025, with further declines expected to 63Mt in 2026. Meanwhile, extensive contracting between 2021 and 2023 has generated a growing surplus of contracted volumes.
The report estimates that China resold between 17Mt and 19Mt of LNG in 2025 alone, with these resales set to grow further in 2026. In the first half of the year, China diverted 47% of its handled LNG to buyers in other countries.