In the first eight months of this year, China’s natural gas imports rose. According to the data released by the General Administration of customs, China’s natural gas import volume in August 2020 was 9.36 million tons, up 13.2% over the same period last year. Among them, 5.96 million tons of liquefied natural gas (LNG) and 3.4 million tons of gaseous natural gas (PNG) were imported. From January to August this year, China’s natural gas imports totaled 65.07 million tons, up 3.3% over the same period last year.

According to customs data, LNG import volume in August was 5.96 million tons, up 16.3% over the same period last year, accounting for 63.63% of the total natural gas import volume in that month. “The main reason for the rise in imports is that the international spot price of LNG in August is still at a low level. The low price of LNG spot resources has boosted the purchasing willingness of Chinese buyers. In addition, the monthly planned purchase volume of several import enterprises has increased compared with last year.” In terms of LNG production capacity of 5 million, the LNG plant in Hubei Province is shut down to a certain extent. Hubei Huanggang LNG liquid plant resources mainly flow into Hubei, Hunan, Jiangxi, Henan, Anhui and other places, and has a common radiation area with some receiving stations in South China and East China.

“The growth of domestic demand in August also supported the growth of LNG import to a certain extent.” Lu Na said that due to the improved weather in Shaanxi and Inner Mongolia, the demand for vehicles picked up; the demand for urban fuel repair depots in East China increased in August; and the demand for power plants in South China was strong, all of which led to a higher LNG import volume in August than in July.

It is understood that Australia is still China’s largest LNG supplier in terms of LNG import source, but its share has declined. According to the data, 42.07% of China’s LNG came from Australia in August, an increase of 6.96% year-on-year; in August, Malaysia became the second largest supplier of China’s LNG import, accounting for 11.71% of the total LNG import volume of that month; and the next LNG supplier was Indonesia, accounting for 9.74% of the total LNG import volume of that month. In addition, it is noteworthy that China’s LNG imports from the Russian Federation accounted for 9.16% of the total LNG imports in August, ranking fourth. “Under the increasingly tense international situation, the diversification of LNG resource portfolio supply has enhanced China’s LNG supply elasticity and avoided being dominated by large resource portfolio suppliers.” According to Lu Na, China’s LNG imports from 14 countries in August, an increase of four over the previous month.

China imported 3.4 million tons of gaseous natural gas in August, up 8.0% over the same period last year. “As China imported only 13000 tons of natural gas from Kazakhstan in July, and resumed its import volume in August, which was 825800 tons, leading to large fluctuations in the import of gaseous natural gas in August.” Lu Na said that in August, the country’s general high temperature, residents and urban electricity demand increased significantly, leading to a substantial increase in gas-fired power generation demand. In addition, due to the support of rising sea gas prices in East China and North China, pipeline gas prices have been reduced in some areas, resulting in the economic performance of pipeline gas; some urban gas users and industrial users have switched back to the pipeline gas source, resulting in an increase in pipeline gas import compared with last month.

Lu Na believes that China’s natural gas imports will decline slightly in September 2020, but will increase steadily from October to December. According to the data monitoring of jinlianchuang, LNG import in September was about 5.481 million tons, which was a narrow decline compared with August. Secondly, Siberian power carried out routine maintenance from September 15 to September 22, and the import of gaseous natural gas will decline. In the next three months, the demand for heating in winter will increase, so China’s natural gas imports will continue to increase from October to December.