China’s thirst for LNG is likely to rebound in 2023, which could exacerbate the global energy crunch, but to what extent the country returns to the spot market remains unclear as it continues to grapple with Covid-19.

China has eased restrictions aimed at curbing the spread of the virus. Those measures limited economic activity and energy demand, but cases have surged in recent weeks as the so-called Covid-zero policies have been undone.

“The exit from zero Covid will likely be bumpy, slow and met with a rapid rise in cases and mortality,” said Kpler economist Reid I’Anson. He said the reopening process is likely to take time. Kpler is forecasting annualized economic growth in the country of 3.5%, higher than its previous expectations, but well below levels of about 6%...