China’s Pivot To Gas Is Fueling Support In LNG Demand

China’s Pivot To Gas Is Fueling Support In LNG Demand

Global economic recovery is gradually taking shape as the spread of the coronavirus is slowing in most countries due to summer weather and rapid vaccination in industrialized countries. China was the first country to enter a lockdown in February 2020 and also the first to restart the economy. Rapid economic expansion is driving the need for raw materials such as LNG. As China's summer heating season is starting, expect more difficulties in an already tight market. 

Chinese imports of LNG have seen a remarkable rebound during the past couple of months. Companies on the mainland imported 6.73 megatonnes in April alone which was the second-fastest annual growth since April 2019 and the third-biggest monthly volume ever. As inventories are being refilled and demand is set to soar due to warmer weather, imports are likely to increase.