In April, China re-exported more than 280,000 tonnes of liquefied natural gas (LNG), the highest level ever recorded in a month, according to shipping tracking data compiled by Bloomberg.
This re-export volume is equivalent to 7.7% of China's total LNG imports in April, clearly showing that domestic consumption demand is slowing down. An unusually mild winter with abundant inventories has caused the Chinese market to no longer be "thirsty" for cold fuel as before.
In addition, higher overseas LNG prices have created more momentum for Chinese importers to increase sales.
Meanwhile, LNG imports into China are also expected to continue to decline this month, extending the downward trend to the 6th consecutive month.
LNG exports from Chinese ports are inherently rare, but since November last year, this activity has increased steadily. Before that, China's last LNG comeback was in January 2024.
The return of large LNG volumes will not only help Chinese importers "free up" inventories, but also provide timely support for the European market, which is rapidly filling up its reserves and replacing Russian gas supplies via pipelines.
Previously, Chinese importers have also shifted many contracted LNG shipments from the US to Europe, aiming to maximize profits in the context of weak domestic demand and sanctions on US gas, making prices in China less attractive.
