Chart of the Week

China Locks In Term LNG Deals

- China has become the single most important buyer of LNG supplied under long-term agreements, increasingly becoming a crucial intermediary in trading cargoes of liquefied natural gas.

- Despite China’s reopening, the country’s LNG imports did not see any major uptick, in fact, its January imports are 15% down year-on-year, totaling 6.07 million tonnes according to Kpler.

- Roughly one-sixth of all term agreements that will begin delivering LNG through 2027 have been concluded with Chinese firms, with China overtaking Japan as the main term buyer.

- Attesting to the growing Chinese clout on LNG trade, Chinese firms are assumed to have resold at least 5.5 million tonnes of LNG last year, roughly 6% of the spot market, as sellers benefited from Europe’s runaway gas prices.