China, the world's largest LNG buyer, stepped up purchases in May ahead of peak summer demand, reversing a months-long decline. The rebound follows disruptions to Middle East supplies that had previously curbed imports.
Sources familiar with the matter indicate the uptick reflects seasonal preparation for higher cooling demand. The reversal marks a shift from a period of reduced buying tied to geopolitical tensions affecting cargo flow from the region.
The rebound signals resilience in China's energy procurement strategy amid ongoing supply chain volatility. Traders are now watching whether this uptick persists through June and July, when power sector demand typically peaks.
Disruptions to Middle East supplies had previously strained global LNG markets, but China's renewed appetite may tighten balances again. The country's state-run buyers have shown flexibility in sourcing from alternative producers like the US and Qatar.
A counter argument exists: some analysts caution the rebound could be short-lived if China's economic weakness curbs industrial gas demand. Inventory data for late May is not yet available, making it unclear if the purchases reflect genuine consumption or stockpiling.