China is sharply increasing imports of liquefied natural gas ahead of the summer season, when hot weather traditionally drives up electricity consumption. According to Bloomberg, the rise in purchases is linked to expectations of heavier pressure on the power grid in the coming months and the need to secure stable fuel supplies in advance.
The 30-day moving average for LNG deliveries to China has risen to 178,000 tons per day. This is the highest level since early February and marks a noticeable turnaround after a spring period when demand remained relatively moderate. Since mid-April, import volumes have been gradually increasing and are now approaching the five-year seasonal average.
State-owned Chinese buyers, including Cnooc Ltd., have become particularly active. According to traders, Chinese importers are buying around seven to ten LNG cargoes a month to compensate for reduced supplies from Qatar. Major companies have stepped up purchases since late April, while private energy groups such as Guangdong Jovo Energy Group are also looking for additional cargoes on the market.
Disruptions in the Middle East Create Room for Russian Supplies
The main reason behind the reshaping of flows is the war in the Middle East, which has complicated shipments from the Persian Gulf. Last month, China partly offset the decline in Qatari deliveries with supplies from other exporters, including Canada, Malaysia and Russia. The Russian factor is gaining additional importance here: amid geopolitical instability, Moscow remains one of the suppliers capable of covering part of Asia’s demand, especially when traditional routes from the Gulf region come under pressure.
For Russia, growing Chinese demand for LNG could create additional opportunities, although competition in the market remains intense. After part of its energy flows was redirected toward Asia, Russian suppliers are interested in strengthening their position in China, where demand depends not only on prices but also on weather conditions, inventory levels, the availability of pipeline gas, coal and renewable energy.
Rising Chinese Demand Could Intensify Competition with Europe
China’s activity is also important for Europe. If the world’s largest LNG buyer continues to increase purchases, competition between Asia and Europe for available cargoes could intensify ahead of the winter season, when European countries will need to refill gas storage sites. According to ship-tracking data, Europe’s 30-day moving average for LNG deliveries is currently about 19% lower than a year earlier and has been declining since mid-March.
Against this backdrop, Chinese companies are booking summer cargoes in advance. Cnooc purchased several cargoes last month for delivery in June, July and August, while Zhejiang Energy International bought a cargo for July. This is a noticeable contrast with last year, when demand in China was weaker: the country relied more heavily on cheaper pipeline gas, had strong inventories and used alternative energy sources, including coal and renewable generation.
Thus, the current rise in China’s LNG purchases reflects not only preparations for a hot summer but also a broader reshaping of the global gas market. Disruptions in the Middle East, stronger Asian demand and the limited availability of spot cargoes could once again turn LNG into an object of fierce competition. For Russia, this is a window of opportunity — but also a test of its ability to consolidate its position in the Chinese market at a time when several major markets are competing for every available cargo.
This article was prepared based on materials published by Bloomberg. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
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