China Slashes LNG Purchases on High Prices, Virus Slowdown
- Importers cut spot LNG and turn to pipelines, domestic wells
- Factories shutting as rising virus cases cause lockdowns
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China is slashing liquefied natural gas purchases as soaring global prices deepen import losses and pandemic lockdowns throttle domestic demand.
Imports in the first quarter fell 14% from the same period last year, according to shipping data, and private companies are spurning offers to use once-highly coveted slots at state-owned receiving terminals. Consultancy Wood Mackenzie Ltd. said it recently revised down its gas demand forecast for the country through 2026 due to economic pressures and high prices.