China slashes LNG purchases on high prices, virus slowdown

Bloomberg

China is slashing liquefied natural gas (LNG) purchases as soaring global prices deepen import losses and pandemic lockdowns throttle domestic demand.
Imports in the first quarter fell 14% from the same period last year, according to shipping data, and private companies are spurning offers to use once-highly coveted slots at state-owned receiving terminals.
Consultancy Wood Mackenzie Ltd said it recently revised down its gas demand forecast for the country through 2026 due to economic pressures and high prices.
The slowdown underscores how China’s strict measures to control the virus are rippling outside its borders. The country’s breakneck consumption growth made it the world’s biggest LNG importer last year and contributed to soaring global prices.
A drop in spot LNG demand now would mean more supply available to be rerouted to Europe as it cuts dependence on Russian pipeline deliveries.
“Signs of gas demand destruction are appearing in China’s industrial sector,” said Lujia Cao, a gas analyst with BloombergNEF.
“Weak demand and prohibitively high LNG prices are curbing importers’ buying interest.”