LNG: China LNG Imports Fall But EU Arrivals at Record High in Q1

China's LNG imports are expected to fall 22% y/y in Q1 2025 to 15.8m metric tons, the lowest for the period since 2020, according to Kpler cited by Reuters.

• China’s low imports have eased pressure on global markets as Europe ends the winter season with underground storage below average at 33.9% full, GIE shows on March 22.
• Reduced residential heating demand in northern China driven by warmer weather, weaker industrial demand, higher domestic gas production and increased pipeline gas imports have all contributed to the low China LNG imports.
• US LNG provided just 1%, or 62k tons, of China’s total LNG imports in March, compared with 3%, or 188k tons in January.
• The drop in US supply is likely due to delivery destination flex in US cargoes enabling resales rather than due to rising trade tensions with the US, Reuters analyst Ron Bousso said. Final destination flexibility is not offered by many Qatar or Australian LNG suppliers.
• European LNG imports surged in March to 10.8m tons and a record-high for Q1 with US accounting for a 54% share of total imports.

Source: Reuters