China purchases LNG after Iran shock: Russell
China, the top consumer of liquefied natural gases in Asia, is showing signs of returning to market.
According to commodity analysts Kpler, the region with the largest imports is expected to receive 21.83 metric tons in June. This will be the highest in five months and also a significant increase from the 21.55 metric tons that were received in the same month last year.
Asia's LNG imports dropped to a six year low of 18,74 million tons after the Strait of Hormuz was effectively closed in April following the U.S.-Israeli attacks on Iran in February 28. This led to the suspension of shipments by Qatar, who had shipped 80.9 millions tons of LNG in 2025.
China barely held on to its position as the largest LNG importer of 2025, as imports fell to 66.48 millions tons, just ahead of Japan.
In the first five years of 2026, it was clear that China would fall to second place because its utilities did not buy spot cargoes when prices soared after the Iran War.
Spot LNG price for North Asia
Prices then eased down to $16.05 per million Btu in mid-April. However, they have since risen to finish at $18.80 the week ending June 5.
Kpler predicts that imports of super-chilled gasoline will rise to 4,48 million tons in the month of June, down slightly from the record high of 4,74 million tons reached in May.
China's imports for May and June were also higher than the 3.78 millions tons imported in March, as well as April's 8-year low 3.63 million tonnes.
JAPAN GAINS
The increase in Japan's appetite for LNG is more than equal to China's. Kpler estimates that Japan will import 5.33 million tonnes, which would be a three-month record and above the 4,91 million tons of June 2025.
South Korea is expected to import 3.26 million tonnes of LNG in June, a slight decrease from the 3.37 million tons that were imported in May and 3.48 millions in June last year.
South Asian buyers were most affected by the loss of Qatari cargoes, as India's imports of LNG fell to a record low of 1,67 million tons.
India is expected to recover its LNG supplies from Angola, Nigeria, and the United States, bringing them up to 2,09 million tonnes in June. This is just a little behind the 2,11 million that were produced in June of last year.
Pakistan, who used to purchase almost exclusively from Qatar has been unable to find an alternative. Imports for June are only expected to be 210,000 tons with just one cargo coming from Oman, and another from Qatar.
Imports to Pakistan in June were about one-third the 620,000 tonnes imported in the same month of 2025. However, they have improved from the 10-year low 70,000 tons of April.
The initial rush of U.S. LNG to Asia following the beginning of the war with Iran has started to slow down. Exports in June were?2.73 millions tons, down from a record high of 4,07 million tons in May.
The U.S. still exports more than the average 1.15 million tons per month to Asia in the three months prior to the attack on Iran.
Kpler estimates exports of 4,99 million tons in June, up from 4,53 million tons in May. This is the lowest level since October 2024.
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These are the views of a columnist, who is also an author.
(source: Reuters)
