Chinese LNG imports are declining as elevated spot prices weigh on buying appetite, contributing to a broader slowdown in Asian liquefied natural gas demand and raising questions about global supply balances.
Chinese LNG imports drive the decline in Asian demand
Asian liquefied natural gas demand is weakening, largely because of China, which is on track to lose its position as the world’s largest LNG importer to Japan, the former top buyer. China has increased domestic natural gas production and pipeline imports from Central Asia and Russia. Even so, persistently high LNG spot prices throughout most of the year remain the main and most likely driver behind the sharp pullback in Chinese purchases.
According to data from Kpler, Asia imported 22.99 million metric tons of LNG last month, marginally higher than the 22.97 million tons recorded in October 2025 and the 22.66 million tons in November 2024. Imports are expected to rebound in December, with Kpler analysts forecasting volumes of up to 26.86 million tons. Even with a year end increase, total Asian LNG imports in 2025 are projected to fall to around 276 million tons, down from 287.8 million tons in 2024. If confirmed, this would mark the first annual decline since 2022.
Chinese LNG imports drop sharply in 2025
Kpler estimates that Chinese LNG imports will total about 64.6 million tons this year, down from 78.27 million tons in 2024. If realized, 2025 would represent China’s lowest LNG purchasing level since 2022. Japan, by contrast, is expected to close the year with imports of roughly 65.62 million tons, reclaiming its position as the world’s leading LNG buyer.
As previously reported by Bloomberg, weak Chinese demand is fueling concerns over a potential global LNG oversupply later this decade, as new export projects come online in multiple countries. Even if lower prices eventually attract Chinese buyers back to the market, analysts doubt that China alone will be able to absorb all the additional volumes. According to Goldman Sachs, excess supply could therefore persist for several years.
Asia shows limited appetite for LNG
An analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) also points to a decline in Asian LNG demand in 2025, estimated at around 5 percent. This would be the steepest annual contraction since 2022. The report highlights high prices and ongoing global trade tensions as key factors constraining regional interest in liquefied natural gas.
While scenarios outlined by the International Energy Agency have reinforced expectations of stronger long term LNG demand, the recent slowdown in LNG shipments to Asia challenges that outlook, IEEFA notes. Asian energy policies are not static but continue to adapt to LNG related barriers such as price volatility, slower economic growth, infrastructure constraints, gas turbine shortages, and energy security risks. These factors could continue to limit demand even in a lower price environment, the analysis concludes.
