China's liquefied natural gas imports are set to hold steady in June at roughly 5.29 million tons, matching the year-ago level, according to Kpler data cited by Bloomberg. The forecast total represents a rebound from May's 4.9 million tons, as surging summer temperatures lift air-conditioning loads across the country.
The May figure reversed a months-long trend of declining imports, after constrained supply from the Middle East pushed spot prices significantly higher. The rebound in June buying signals that Chinese buyers are returning to the market despite elevated costs, prioritizing energy security over price sensitivity during peak cooling season.
Infrastructure utilization is expected to rise as utilities ramp up LNG terminal throughput to meet incremental power demand. State-owned giants like PetroChina and CNOOC have been booking additional cargoes from the spot market and securing term supplies to cover the summer spike, though terminal capacity remains adequate for current import levels.
Geopolitically, China's renewed appetite for LNG tightens the global balance, especially as European storage refilling competes for the same cargoes. Beijing's pivot to long-term deals with Qatar and Russia helps buffer against Middle East disruptions, but spot market volatility remains a risk for buyers seeking prompt deliveries.
Counter-argument: The year-on-year flatness of June arrivals could indicate that demand growth is cooling, or that high prices are still dampening discretionary purchasing despite the heat, with some analysts arguing the rebound is merely seasonal rather than structural.