Despite a slower than expected economic recovery from the Covid-19 pandemic, China gradually regained its position as the world’s largest LNG importer in July, raising the potential for a winter supply squeeze.

China’s liquefied natural gas imports from the beginning of the year through July totaled 42.2 million tons (Mt), placing it around 2 Mt higher than Japan during the same period, according to data from Kpler. Cargoes landing in China especially increased during the second quarter as the country’s spot buying activity increased.

Kpler LNG analyst Laura Page told NGI that Chinese LNG demand is expected to continue to recover throughout the year compared to its drop in imports last year. China’s global LNG imports last year fell to the lowest point since 2019 as it...