China’s LNG Imports Fall for 13th Straight Month as Domestic Output Surges

Core Insights - China's liquefied natural gas (LNG) imports are projected to decline for the 13th consecutive month in November, with a total of 5.81 million tons, representing a 5.5% decrease year-on-year, although this decline is less severe than the previous two months which saw declines over 10% [1][2][3] Group 1: Import Trends - In the first half of last year, China experienced a significant increase in LNG and pipeline gas imports, with a 14.3% annual rise, totaling 64.65 million tons as the country aimed to fill its storage [2] - Following the initial surge to fill storage capacities, natural gas imports weakened as facilities reached full capacity [2][3] Group 2: Domestic Production and Demand - This year, LNG demand has decreased significantly due to an increase in domestic natural gas production, which has been aligned with China's strategy to enhance reliance on domestic energy sources [3] - Domestic gas production reached an all-time high earlier this year, resulting in LNG imports dropping to the lowest level in six years, down by 19% year-on-year during the first seven months of 2025 [3] Group 3: Geopolitical Factors - The demand for LNG was also impacted by President Donald Trump's tariff policies against China, which led to retaliatory tariffs on U.S. energy imports, causing shipments of LNG and crude oil to drop to zero [4] Group 4: Pipeline Developments - China has increased its natural gas imports from Russia through the Power of Siberia pipeline, with recent agreements to expand the pipeline's capacity to over 100 billion cubic meters annually, comparable to the capacity of the Nord Stream pipelines [5]