- Over 25% of China’s LNG imports in 2024 came from Qatar, the UAE.
- China holds 15 LNG supply contracts with Qatar, the UAE.
- Chinese importers may be forced to purchase from spot market.
The escalating tension between Israel and Iran has sparked concerns over potential disruptions to LNG supplies through the strategically vital Strait of Hormuz, a crucial passage for exports from Qatar and the UAE to China, reports Platts.
Tensions Mount, LNG Flows in Jeopardy for China
Israeli forces launched attacks June 13 on Iranian targets, including the capital, Tehran. Israeli Defense Minister Israel Katz described the operation as a “preemptive strike.” In response, Iran has heightened its air defense readiness, with all flights at Imam Khomeini International Airport in Tehran suspended, according to media reports.
In 2023, Iran threatened to shut down the Strait of Hormuz amid clashes with Israel, following a significant escalation of tensions.
A trader from a Chinese national oil company warned, “While we don’t yet foresee a war escalating to a Hormuz blockade, its closure would severely impact global energy flows.”
The Strait of Hormuz is a critical passage for LNG exports from the Middle East, with Qatar and the UAE heavily reliant on this route. Qatar accounts for 18.8% of global LNG exports in 2024, according to data from the International Gas Union.
Data from the General Administration of Customs showed that China imported 18.35 million mt of LNG from Qatar in 2024, accounting for 24% of its total LNG imports of 76.65 million mt. Since February 2025, Qatar has surpassed Australia to become China’s largest LNG supplier, with imports comprising 33.4% of the total over January-April.
Meanwhile, the UAE supplied 851,000 mt of LNG to China in 2024, a 27% year-over-year increase, according to GAC data.
Chinese importers have signed 10 long-term LNG supply contracts with Qatar, totaling approximately 26.9 million mt/year. Of these contracts, seven for 15.9 million mt/year have already commenced delivery, according to data from Platts, part of S&P Global Commodity Insights.
China has also signed five LNG supply contracts with the UAE, amounting to around 3.1 million mt/year, with two contracts for 800,000 mt/year already in execution, Platts data showed.
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Source: Platts
