China’s liquefied natural gas (LNG) imports dropped to a five-year low in February 2025, with inward shipments totaling 4.5 million tonnes, according to Kpler data. This decline positioned China behind Japan as the largest LNG importer for the second consecutive month. ?
Several factors contributed to this decrease. A relatively mild winter reduced heating demand, leading to ample LNG supplies in storage. Additionally, industrial demand remained subdued. Wei Xiong, head of China gas research at Rystad Energy, noted that high inventories are likely to continue weighing on imports through the end of the heating season. ?
Furthermore, China’s recent imposition of a 15% tariff on U.S. LNG imports in February 2025, in response to U.S. trade measures, has influenced import patterns. This tariff has made U.S. LNG less competitive in the Chinese market, prompting buyers to seek alternative suppliers. ?
The shift in global LNG dynamics, with Europe offering more attractive pricing, has also diverted shipments away from China. European LNG imports surged to near-record levels in February, driven by efforts to replenish inventories and compensate for reduced pipeline supplies from Russia.
