China's LNG Imports Decline for Second Straight Month Amid Soaring Prices
China's liquefied natural gas (LNG) imports may decline year-on-year for a second consecutive month, according to data from Kpler presented by Bloomberg. The estimated September figure stands at 5.3 million tonnes, an 8% decrease compared to the same period last year.
The projected decline is attributed to high fuel prices, which have risen significantly due to the war in the Middle East. Spot-market prices exceeded $20 per million British thermal units (mmBtu) in August and reached $26 per mmBtu in early September, more than double the price from a year ago.
China's LNG imports have been declining since June, with major state importers negotiating long-term supplies with exporters whose routes do not require passage through the Strait of Hormuz. The country is also considering options to reduce its dependence on supplies from the Persian Gulf.
Qatar has extended a force majeure on LNG exports, which may keep prices high for longer ahead of the heating season in the Northern Hemisphere.