China reduced gas imports, but advanced the price in October

China reduced gas imports, but advanced the price in October

In October, China reduced its imports of natural gas (via pipelines and as liquefied gas) by 2.4% year on year to 12.057 billion cubic meter. Finmarket News Agency reports about this with reference to the data of customs statistics of the People’s Republic of China. Before that, gas imports grew throughout the third quarter – from July to September.

The average price of imported fuel in October rose to $233 per thousand cubic meters after $208 in September and an annual low of $198 in August. Despite the fact that the average value of the regional spot index for LNG-JKM – for October was $222 per thousand cubic meters.

During the first 10 months, China increased its natural gas imports by 5.7% to 107.268 billion cubic meters. More detailed data on the structure of imports and their sources will be published by the Chinese Customs in the last week of the month.

China imports gas via pipelines from Russia (Gazprom), Turkmenistan, Uzbekistan, Kazakhstan, and Myanmar. The main LNG suppliers are Australia, Malaysia, Indonesia and Russia. Turkmenistan is the leader in pipeline gas supplies to the Chinese market.

Gas consumption by the largest economies in the Asia-Pacific region is a key factor for the global market. After the impact of the coronavirus pandemic, Asian buyers reduced their gas consumption, which caused prices to collapse around the world.

After demand recovering in the Asia-Pacific region, LNG prices in the East are once again attracting LNG flows in their direction, reducing the oversupply around the world.