Key facts
- China's LNG imports are expected to fall 18% in August year-over-year.
- Asian spot LNG prices have nearly doubled from a year ago.
- High prices are causing demand destruction among Chinese industrial consumers.
- Global LNG supply is tightening due to Asia-Europe competition and supply disruptions.
- QatarEnergy extended force majeure on LNG deliveries, impacting global supply.
China's liquefied natural gas imports are poised for an 18% decline in August compared to the previous year, breaking a three-month trend of increasing purchases. This downturn is attributed to soaring LNG prices that are deterring price-sensitive industrial consumers.
Asian spot LNG prices have nearly doubled this month from a year earlier, averaging $21 per million British thermal units (MMBtu), up from $12 MMBtu in August 2025. Last week, spot prices in Asia reached a five-month high of $23.388 MMBtu, hovering near four-year highs.
The global gas market is experiencing significant tightening due to intense competition for supply between Asia and Europe, particularly for cargoes not passing through the Strait of Hormuz. Further concerns about global LNG supply were amplified by reports that QatarEnergy has extended its force majeure on LNG deliveries through October-early November.
Following an eight-year low in April, China's LNG imports had begun to recover in May and continued to increase through June and July. However, the current high price environment is leading to demand destruction, with estimates suggesting August imports will fall to approximately 5.2 million tons.