China's LNG Imports Plummet Amid War-Driven Price Surge

China's imports of liquefied natural gas (LNG) are set to drop this month from last year, according to ship-tracking data. The decline is attributed to high prices triggered by the war in the Middle East, which has weighed on consumption.

Deliveries are estimated at around 5.2 million tons in August, a decrease of 18% compared to the same month last year, according to Kpler's ship-tracking data. This drop is a stark contrast to the previous three months, during which imports jumped due to efforts to refill inventories for peak summer demand.

Asian LNG prices averaged $21 per million British thermal units this month, up from $12/mmbtu last August. Nelson Xiong, senior LNG analyst at Kpler, said that 'significant demand destruction among price-sensitive industrial users' is a result of these high prices.