China is set to reduce its liquefied natural gas (LNG) imports in 2025 for the first time since 2022. Analysts at BloombergNEF forecast a decline of 11 million tons, bringing total imports to 74.89 million tons. According to analyst Daniela Li, the drop is primarily driven by US tariffs and milder weather.
Li warns that sluggish gas demand in China could lead to a market surplus later this decade, just as more LNG production capacity comes online.
LNG suppliers are already investing billions in new export projects, betting on continued growth in Chinese demand. However, that assumption is increasingly in question as China shifts toward cheaper alternatives like coal, renewables, and domestic gas. This shift could undermine forecasts of a demand rebound and threaten the viability of major LNG investments, Li adds.
Despite the decline in LNG imports, China’s overall natural gas consumption is still growing. However, much of this demand is being met through domestic production, driven by Beijing’s push for greater energy security. Bloomberg notes that the country saw record growth in domestic gas output last year.