China imported 6.61 million mt of LNG in November, up 31.6% month on month and 1.6% higher year on year on rising domestic demand despite higher prices, according to data released Dec. 26 by the country’s General Administration of Customs, reports S&P Global Platts.
Lower temperatures stimulated higher consumption from household users and demand from industrial users rose due to more orders in the Christmas season, market sources said.
Year-long imports
The average price of LNG imported by China in November, comprising both term and spot cargoes, was about $6.28/MMBtu on a delivered basis, up 15.3% from about $5.44/MMBtu a month earlier, according to S&P Global Platts calculations based on customs data.
Through January-November, China imported 59.54 million mt of LNG, up 10.6% year on year, the data showed. This was marginally slower than a 13.4% growth seen in the same period last year.
LNG accounted for 65.8% of the country’s total natural gas imports in the first 11 months of 2020, compared with 61.8% in January-November 2019, Platts calculations based on customs data showed.
Tight supply in the last quarter
China imported 2.57 million mt of natural gas via pipelines in November, up 2.3% month on month, but down 13% on the year, customs data showed.
Lackluster pipeline gas imports failed to ease supply constraints amid surging winter demand, leading to higher prices in December, especially in the northern regions that mostly rely on pipeline gas supply, market sources noted.
In addition, China’s pipeline gas imports from its biggest supplier Turkmenistan fell 1.5% month on month in November, and dropped by 22.2% year on year, according to the customs data.
This decline contributed to the tight gas supply in the Chinese market in recent weeks, especially trucked gas prices, market sources said.
Imports from other countries
China’s pipeline gas imports from Turkmenistan have been mostly maintained about 2 million mt/month in 2019, but the volume dropped to 1.45 million-1.75 million mt/month in 2020, customs historical data showed.
Turkmenistan sent 18.79 million mt of gas to China via pipeline in January-November, down 14.9% year on year, the data showed.
China’s pipeline gas imports from Kazakhstan, Uzbekistan, and Myanmar all increased month on month in November, according to the data. The imports partially compensated for the supply cut from Turkmenistan last month.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: S&P Global Platts
