According to CGAC, China’s LNG import reached 5.23 million tons in May, up 18.94% Y-O-Y but less than previously estimated, while China’s domestic natural gas production and piped gas import were 11.29 and 2.61 million tons, up 9.64% and down 16.50% Y-O-Y respectively.
The LNG import also saw a significant import cost reduction to $359.26/mt, down 10% M-O-M and 19% Y-O-Y, while the piped gas import also saw import cost dropping to $300.87/mt, down 8% M-O-M and 16% Y-O-Y. The oil meltdown in May trended its impact into the pricing of piped gas import and long-term LNG import gradually, and the international LNG supply glut also curbed the spot price at historical lows.
The tendency has become clear, that the domestic production peaked in March and then kept narrowing, while the piped gas import remained at the lower limits. The low-priced LNG was eroding the market shares aggressively, and the import volume remained at a high level. This pattern is expected to last until October, the beginning of the pre-winter heating season.
