CHINA DATA: October natural gas imports fall 12% on month on higher prices

China imported 9.38 million mt, or 12.93 Bcm, of natural gas -- including both piped gas and seaborne LNG -- in October, down 11.7% month on month, General Administration of Customs preliminary data released Nov. 7 showed.

Higher prices discouraged China's natural gas imports, mainly spot LNG imports, last month, according to domestic trade sources.

China was estimated to have imported around 5.54 million mt of LNG in October, down 15% from around 6.53 million mt in September, according to ship tracking data.

The average cost of importing natural gas into China in October was estimated at Yuan 3,467/mt ($541.89/mt) excluding taxes and fees, up 9.3% from Yuan 3,171/mt in September, and marking the sixth consecutive month-on-month rise since May, S&P Global Platts calculations based on customs data showed.

The JKM benchmark price for spot LNG in Northeast Asia averaged $19.02/MMBtu over Aug. 16-Sept. 15 for October delivery cargoes on a DES basis, up 21.5% from a month earlier, and equivalent to above Yuan 6,500/mt after adding taxes and fee, Platts data showed.

Domestic natural gas demand was lackluster during late September and earlier October due to higher prices and the week-long National Day holiday, which also dampened interest in spot imports to a certain extend in the month, market sources noted.

China's National Day holiday falls in Oct. 1-7 when market activities normally reduce, sources added.

The average price of China's trucked LNG cargoes, which was unregulated by the government, dropped below Yuan 6,000/mt across the entire country on Sept. 29 and remained below the level till Oct. 11, according to data from Shanghai Petroleum and Natural Gas Exchange, despite Platts JKM increasing to above $32/MMBtu on Sept. 28 and even spiking to $56.33/MMBtu on Oct. 6.

Meanwhile, the October natural gas imports were still up by 24.5% year on year, reflecting the strong demand recovery and growth in natural gas demand over the period.

Over January-October, China's natural gas imports totaled 99.07 million mt, or 136.62 Bcm, up 22.3% from the corresponding period in 2020, the preliminary customs data showed.

Separate volume data for LNG and piped gas will be released by the customs later in November.