Aerial photo taken on May 23, 2020 shows the construction site of liquefied natural gas (LNG) storage tanks at Caofeidian port in Tangshan, north China's Hebei Province. (Xinhua/Yang Shiyao)

 
China imported 5.79 million tons of liquefied natural gas in June, up 29.2 percent over the same period from one year earlier, according to a report from cngold.org, citing Chinese customs.

Meanwhile, China purchased 2.54 million tons of pipe gas, a drop of 15 percent year-on-year, said the report. 

Because of LNG’s price advantage, China increased LNG imports in recent months, an LNG analyst told the Global Times on Thursday, adding that in the third quarter of 2020, the proportion of LNG in China’s natural gas import structure will further increase, which means that of pipe gas will drop.

According to data released by the Shanghai Petroleum and Natural Gas Exchange (SHPGX) on Wednesday, China’s comprehensive import price index for LNG, not including tax, dropped to 2,320 yuan ($331.68) per ton, down 172 yuan, or 6.9 percent from the previous week.

The average price in recent three months is lower than levels from a year earlier, the SHPGX data showed.

The JKM LNG spot price, the benchmark in Northeast Asia, dipped to $2.10/MMBtu for June delivery, on a DES basis, down $0.7/MMBtu compared to the price for May delivery, according to market information provider S&P Global Platts.

In a market where supply outweighs demand, at least 50 percent of global LNG export projects will be delayed for at least one year, as investors cautiously make decisions amid the COVID-19 pandemic and sluggish demand, according to market information provider Sublime China Information Co, which also said that some suppliers’ profit margins are being squeezed as LNG prices drop worldwide.

In the next two to three years, global LNG supply may shrink amid less interest in investment.

Global Times