China Cuts LNG Imports as Cheap Domestic Gas Undercuts Global Prices

AI Summary

China has cut LNG imports despite entering peak-demand season, as abundant domestic gas supplies have pushed local prices below international benchmarks. State energy firms have completed a stockpiling drive and are releasing inventory, reducing the appeal of spot-market purchases.

China is importing less liquefied natural gas despite the start of peak demand season, thanks to an abundant domestic gas supply that has led to lower prices. The Chinese national average for LNG stood at $21.97 per million British thermal units today, Bloomberg reported, almost $10 below the Japan/Korea Marker benchmark. The gas price drop comes as state-owned energy majors finish their gas stockpiling drive and begin to release gas from inventory, the report also said. The sufficient domestic supply has made spot market LNG purchases unappetizing…