LNG

Analysts have revised down Asian natual gas demand by 1.7 million tons after Chinese LNG imports fell 0.9 million tons in a flatlining economy. 

China’s rapid adoption and scale-up of LNG trucks sales is displacing the use of oil and oil products in road transport, lowering diesel demand. Based on the current order book and stringent environmental regulations, the International Energy Agency (IEA) expects the number of LNG-fuelled ships to almost double and reach over 1 200 vessels by 2028.

China's Guangdong Pearl River Investment Management Group (GPRIMG) announced via its official WeChat account the company has signed a long-term LNG sale and purchase agreement (SPA) with ConocoPhillips. The deal is believed to be the first SPA signed by a Chinese company since tariffs were put on US LNG.

South Korean utility GS Energy and the construction firm BS Hanyang have been awarded a 1.1 trillion won ($815 million) project finance loan to develop the Northeast Asia LNG hub terminal in Yeosu. Built at a total cost of 1.4 trillion won, the project involves three LNG storage tanks with the first two slated to start operations by the end of 2027, and the third by the end of 2028.

If oil prices fall further – possibly below $60 per barrel – majors will have to choose between upholding high shareholder returns or spurning investors to save their balance sheets, analysts warn. BP, Eni and TotalEnergies target shareholder returns of 30 to 40 percent while Shell strives to achieve 40 to 50 percent.

India’s LNG imports are bound to rise amid higher gas-burn in the summer season and Petronet aims to get the expansion of the 17.5 mtpa Dahaj terminal to 22.5 mtpa completed in the next three months, CEO A.K. Singh said. He indicated Petronet aims to maximise the utilisation of this terminal over the summer.

There were 2.17mmt of LNG on the water with destinations in China according to our market visibility at the time of writing on 29 May. These cargoes had an estimated delivery horizon of 6 July. Seven cargoes totalling 0.48mmt were broadly headed for China but still had to declare their destination terminals.

LNG Demand: 

China's liquefied natural gas requirements, despite their previous robustness, continued their tempering in 2025. Notably, government data (albeit containing gaps for the first two months of the year) points to rising natural gas output and pipeline supply. Moreover, Chinese buyers are opting to re-sell any US cargo contingent on their books instead of importing them into China after Beijing imposed a 15 percent import tariff in a trade war with Washington.

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