China’s Limp LNG Demand Faces More Hurdles From Guangdong Reform

China’s tepid imports of liquefied natural gas face further pressure after market reforms in the southern province of Guangdong that could cut demand for the fuel from power plants.

The world’s biggest LNG buyer has already seen imports plunge 19% over the first seven months of the year, including a 6.7% drop in July, as industrial demand remained weak and traders rerouted cargoes to markets willing to pay higher prices. Reduced consumption from electricity generators in Guangdong would only compound those woes.