Chinese LNG traders eye Strait of Hormuz for potential supply disruption risks

Traders in China, the world's biggest importer of LNG from Qatar, are monitoring developments in the Strait of Hormuz for any potential disruption to LNG supply, they told Platts, part of S&P Global Energy, on March 2.

Some shipping companies such as Japan's NYK Line and Mitsui O.S.K. Lines said March 1 they had halted all ships from transiting the strait, as reported by Platts.

With about 80% of Qatari LNG destined for Asian buyers, any prolonged disruption could impact Chinese imports and force buyers to seek alternative supplies, industry analysts said.

Traders and company sources at multiple Chinese energy and LNG companies told Platts they were monitoring the situation. The sources declined to be identified because of the sensitivity of the matter.

A trader at a state-owned energy company said that if the Strait of Hormuz closure continued for an extended period, it could lead to a supply disruption. However, the full impact still needs to be comprehensively assessed, he said.

A second trade source at another state-owned energy company expects limited impact on LNG supply in the short term, adding that if the closure persisted, the company would consider measures such as reducing LNG supply volumes and increasing domestic gas supply.

"At present, our supply remains manageable, but we will continue to monitor consumption and reassess as needed. Whether a supply gap will occur will depend on domestic demand, weather conditions, and factors such as the pace of industrial restarts following the Chinese holiday," the second source added.

Platts assessed the April JKM at $15.068/MMBtu on March 2, up 41% from the previous Asian close.

Business activity in China has only gradually resumed following the nine-day Lunar New Year holidays, which began Feb. 15 and ended Feb. 23. Many factories did not restart operations until after the Lantern Festival, which falls on March 3 this year.

China imports

China imported 19.44 million mt of LNG from Qatar in 2025, accounting for 28.4% of its total imports of 68.43 million mt, making Qatar China's second-largest LNG supplier, General Administration of Customs (GAC) data showed.

Chinese importers have signed 10 long-term LNG supply contracts with Qatar, totaling about 26.9 million mt/year. Of these contracts, seven for 15.9 million mt/year have already commenced delivery, showed Platts data.

LNG shipments from the UAE also move through the Strait of Hormuz, though the volume is relatively small.

The UAE currently has four LNG supply contracts with Chinese importers, amounting to about 2.7 million mt/year, with two contracts for 900,000 mt/year already in execution, Platts data showed.

The UAE supplied 437,985 mt of LNG to China in 2025, down 48.6% year over year, according to customs data.