China's LNG Demand Slowly

China's rising natural gas output and pipeline supply are slowing its liquefied natural gas imports this year, capping prices in the region. Jan-April LNG imports fall 31% yoy, according to customs data.

China's LNG imports have shown a significant decline in the first four months of 2025, according to data from the General Administration of Customs. The country reported a 31% year-on-year decrease in LNG imports from January to April, with imports totaling 20.06 million tonnes, down from 29.02 million tonnes in the same period last year [1].

This drop in LNG imports can be attributed to several factors. Firstly, China's domestic natural gas production has been increasing, reducing its reliance on foreign LNG supplies. Additionally, the country has been boosting its pipeline gas imports, which reached 5.03 million tonnes in April alone, marking a 23.6% year-on-year increase [1].

The decline in LNG imports has been accompanied by a rise in pipeline gas imports, which has been driven by the government's efforts to diversify its energy sources and reduce its dependence on foreign energy supplies. This shift has also had an impact on global LNG prices, as the reduced demand from China has capped prices in the region.

The decrease in LNG imports comes at a time when China is the world's largest LNG importer, although it was recently overtaken by Japan in the first quarter of 2025. Japan's LNG imports reached about 17.66 million tonnes during January-March, compared to China's 15.51 million tonnes [1].

In February 2024, China imposed a 15% tariff on US coal and LNG imports in response to US tariffs on Chinese goods. Since then, China has not imported US LNG supplies [1].

The overall trend indicates that China's rising natural gas output and pipeline supply are significantly impacting its LNG imports, with a notable decrease in imports observed in the first four months of 2025. This shift is likely to continue, given the country's focus on domestic energy production and supply diversification.

References:
[1] https://lngprime.com/lng-terminals/chinas-lng-imports-continue-to-decrease/151516/