China’s monthly LNG offtake in August amounted to 6.75mmt, our data showed at the time of writing, which constituted month-on-month demand growth of 0.43mmt (7 percent) from the 6.32mmt we recorded in July.
Chinese demand during the report period of July and August of 13.07mmt thus increased by 0.79mmt (6 percent) from total imports of 12.28mmt during the preceding two-month report period of May and June 2024. China’s LNG imports in May and June stood at 6.40mmt and 5.88mmt, respectively. Accordingly, China’s annualised LNG import capacity utilisation during the current report period stood at roughly 54 percent, up 3pp from the previous report period of May-June. The amount imported during the report period thus also constituted an increase of 0.68mmt (5 percent) from the 12.39mmt we recorded during the July-August period of 2023.
GDP & Prices
China's economic growth has shown fluctuating performance throughout 2024. The year began strongly, with GDP expanding by 5.3 percent year-on-year in the first quarter, surpassing market expectations and marking the most robust growth since the second quarter of 2023. This initial surge was propelled by strong industrial output and steady, albeit decelerating, growth in the services sector. Chinese LNG consumption mirrored this growth trend.
However, the momentum slowed in the second quarter, with the economy growing by 4.7 percent year-on-year, falling short of the 5.1 percent market forecast. This deceleration represents the weakest yearly advance since the first quarter of 2023, reflecting persistent challenges in the property sector, weak domestic demand, a depreciating yuan, and ongoing international trade frictions.
Despite the second-quarter slowdown, the economy achieved 5.0 percent growth in the first half of 2024, aligning with the government's full-year GDP growth target of around 5.0 percent. This target reflects both confidence in the economy's resilience and acknowledgment of the challenges ahead.
Our calculations based on Chinese customs data indicated China’s landed LNG prices averaged US$13.16/mmBtu during the report period of July-August, still down drastically from a peak of almost US$28/mmBtu in January 2023 but up from the average of US$12.03/MMBtu for the previous two-month period of May-June.
Chinese domestic LNG prices also increased in July and August, with the highest privately quoted domestic price during the report period having decreased to US$14.66/mmBtu from US$12.65/mmBtu during the preceding two months of May and June. The average Chinese domestic LNG price during the report period also increased by US$0.73/mmBtu to US$12.89/mmBtu from around US$12.16/mmBtu during the previous two months.
Meanwhile, the average domestic price indicated by the National Bureau of Statistics (CNBS) stood at US$13.16/mmBtu for the July-August period, which represented an increase of US$0.27/mmBtu (2 percent) from US$12.89/mmBtu during the previous two months.
North China
LNG demand decreased in the north of China during the report period up to 31 August, with offtakes down by 0.59mmt (-16 percent) from 3.61mmt in the two months of May-June to 3.02mmt for the report period of July- August. The largest share of LNG influx into the region during the report period took place via the Qingdao LNG terminal.
China’s North led by Qingdao LNG
Qingdao LNG topped the list of northern terminals with imports of 0.90mmt during the report period. This represented an increase of 0.13mmt (17 percent) compared to the previous period's 0.77mmt. Imports originated from Ras Laffan, Australia Pacific LNG and PNG LNG.
Tianjin - Nangang LNG
Tianjin - Nangang LNG recorded imports of 0.68mmt, a slight increase of 0.02mmt (3 percent) from 0.66mmt in the previous period, according to our data. Cargoes were sourced from Ras Laffan, Australia Pacific LNG, and Sakhalin-2 LNG.
Caofeidian LNG
Caofeidian LNG imports fell to 0.59mmt, a decrease of 0.25mmt (-30 percent) from 0.84mmt. Supply sources included Sabine Pass LNG and Yamal LNG.
Tianjin LNG, Caofeidian Xintian LNG, Tianjin Binhai LNG and Dalian LNG
The remaining four northern terminals – Tianjin LNG, Caofeidian Xintian LNG, Tianjin Binhai LNG and Dalian LNG – saw varied performance. Tianjin LNG's imports fell significantly to 0.26mmt, down 0.32mmt (-55 percent) from 0.58mmt, sourcing from Ras Laffan, Coral Sul FLNG, Cameron LNG, and Australia Pacific LNG. Caofeidian Xintian LNG bucked the trend with ongoing growth, importing 0.25mmt, up 0.03mmt (14 percent) from 0.22mmt, supplied by Ras Laffan and Coral Sul FLNG. Tianjin Binhai LNG's imports decreased to 0.21mmt, down 0.18mmt (-46 percent) from 0.39mmt, receiving from Yamal LNG and NWS LNG. Dalian LNG saw a modest decline to 0.13mmt, down 0.02mmt (-13 percent) from 0.15mmt, with supply from Sakhalin-2 LNG, NWS LNG, and Bontang. Collectively, these four terminals imported 0.85mmt during the report period, showing an overall decrease in volumes.
East China
At the time of writing, demand in East China was dominated by the wider Shanghai area, where Jiangsu LNG imported 1.28mmt during the report period, an increase of 0.38mmt (42 percent) from 0.90mmt in the previous period. Jiangsu LNG sourced from Ras Laffan, Gorgon LNG, Freeport LNG, Corpus Christi LNG, Oman LNG, PNG LNG, Yamal LNG and a re-export from Zeebrugge. In line with the Shanghai area’s demand growth, overall, LNG demand in East China was up by 0.87mmt 26 percent) period-on-period to 4.28mmt in Ju ly-August from the 3.41mmt we recorded in May-June.
Wider Shanghai area
The remaining wider Shanghai area – comprising Shanghai (Yangshan) LNG, Shanghai Peak-Shaving, Pinghu LNG and the Qidong facility – imported a total of 1.06mmt over the report period. Shanghai (Yangshan) LNG saw a significant increase to 0.82mmt, up 0.38mmt (86 percent) from 0.44mmt previously, sourcing from Malaysia LNG, Bontang, Singapore LNG, and Queensland Curtis LNG. Shanghai Peak-Shaving facility decreased to 0.20mmt, down 0.04mmt (-17 percent) from 0.24mmt, supplied by Ras Laffan and Calcasieu Pass LNG. Pinghu LNG's imports fell to 0.04mmt, down 0.02mmt (-27 percent) from 0.06mmt, with supply from Malaysia LNG. Qidong LNG was not seen in the market during this report period following an import of 0.07mmt during the previous period, our data indicated.
Yancheng LNG & Wenzhou LNG
Yancheng LNG experienced a significant decrease in imports to 0.29mmt, down 0.39mmt (-57 percent) from 0.68mmt in the previous period. It received LNG from Queensland Curtis LNG and Ras Laffan. After Wenzhou LNG was not seen in the market during April-May, the terminal stormed back on stage with imports amounting to 0.33mmt. Its supply sources included Sabine Pass LNG, Yamal LNG, Corpus Christi LNG, and Ras Laffan.
Zhejiang & Zhoushan LNG
Zhejiang LNG's imports rose significantly to 0.90mmt, an increase of 0.27mmt (43 percent) from 0.63mmt in the previous period. It sourced from a diverse range of suppliers including Ras Laffan, Queensland Curtis LNG, Oman LNG, Atlantic LNG, Cameron LNG, and Bonny Island. Meanwhile, Zhoushan LNG saw a modest increase to 0.42mmt, up 0.03mmt (8 percent) from 0.39mmt. Zhoushan's supply came from Gorgon LNG, Sabine Pass LNG, Yamal LNG, and Freeport LNG. Together, these two terminals showed strong performance, contributing significantly to the region's LNG imports.
South China
Regional imports in South China – where LNG demand is primarily determined by the southern industrial clusters surrounding Shenzhen – saw a significant regional demand increase during the report period of July-August, our data showed. The region’s imports amounted to 5.77mmt over the report period, which meant they were up by 0.51mmt (10 percent) from the 5.26mmt we recorded in May-June.
Shenzhen terminals
South China's imports were led by Guangdong Dapeng LNG, which saw offtakes of 1.46mmt, an increase of 0.11mmt (8 percent) from 1.35mmt in the previous period. This placed it first among China's terminals, with supply sources including Ras Laffan, Australia Pacific LNG, Gorgon LNG, Wheatstone, and Das Island. Neighbouring Shenzhen Diefu LNG imported 0.79mmt, a slight decrease of 0.08mmt (-9 percent) from 0.87mmt, sourcing from NWS LNG, Queensland NWS LNG, Ras Laffan, and Malaysia LNG. The adjacent Shenzhen Peak-Shaving facility was also again seen in the market this period with imports of 0.02mmt, sourced from Singapore LNG.
Zhuhai and Fujian LNG
Zhuhai LNG saw a significant increase in offtakes to 1.00mmt, up 0.77mmt (44 percent) from 0.77mmt the previous period. Supply came from Oman LNG, NWS LNG, Corpus Christi LNG, Coral Sul FLNG, Australia Pacific LNG, and Gorgon LNG. Fujian LNG also experienced growth, with imports rising to 0.74mmt, an increase of 0.18mmt (32 percent) from 0.56mmt. Its supply sources included Sakhalin-2 LNG, Sabine Pass, Bonny Island, Cove Point LNG, Queensland LNG, and Freeport LNG.
Jieyang and Beihai LNG
Jieyang LNG saw a slight decrease in imports to 0.58mmt, down 0.04mmt (-6 percent) from 0.62mmt. It received cargoes from Malaysia LNG, Yamal LNG, Tangguh, Cameron LNG, and Bonny Island. Beihai LNG experienced a more significant drop, with imports falling to 0.42mmt, a decrease of 0.17mmt (-29 percent) from 0.59mmt. Supply came from Gorgon LNG, Freeport LNG, Malaysia LNG, and a re-export from Zeebrugge.
Hainan LNG and Bauhinia Spirit
Hainan LNG increased imports to 0.35mmt, up 0.07mmt (25 percent) from 0.28mmt, sourcing from Malaysia LNG. The Bauhinia Spirit FSRU offshore Hong Kong saw significant growth, with imports rising to 0.22mmt, an increase of 0.10mmt (83 percent) from 0.12mmt. It received supply from Ras Laffan.
Zhangzhou, Nansha, and Huizhou LNG
Zhangzhou LNG saw a modest increase in imports to 0.07mmt, up 0.03mmt (300 percent) from 0.04mmt, with supply from Yamal LNG. Nansha LNG maintained steady imports at 0.06mmt, sourcing from Ras Laffan.
Huizhou LNG, a new terminal, entered the market during this period with imports of 0.06mmt. The terminal received its commissioning cargo via the Das Island LNG-sailed Maran Gas Coronis. With three 200,000 cubic metre tanks and a 6.10 million tonnes of annual capacity, Huizhou LNG represents a significant addition to China's LNG infrastructure. The terminal is designed to handle LNG vessels ranging from 80,000 to 266,000 cubic meters in size and is a crucial component in both Guangdong Energy's and Huizhou city's carbon-neutral strategies.
