China's LNG Imports Set to Drop 18% in August as Prices Soar

China anticipates a 18% decrease in liquefied natural gas (LNG) imports in August compared to last year, defying a recent upward trend in purchases during the summer months, according to vessel-tracking data from Bloomberg. The surge in LNG prices has deterred some cost-conscious industrial consumers from increasing their purchases, contributing to the anticipated decline.

The average price of spot LNG for delivery into Asia nearly doubled this month from the previous year, with Asian LNG prices averaging $21 per million British thermal units (MMBtu) in August 2026, up from $12 per MMBtu in the same period last year. Spot LNG prices in Asia peaked at $23.388 per MMBtu last week, marking a five-month high.

The price of LNG has been hovering at four-year highs due to supply constraints, particularly the absence of Qatari deliveries since the onset of the Iran war. Asian utilities have been outbidding European buyers for LNG supply throughout the summer, as the Middle East's supply is insufficiently covered by other producers. The recent extension of QatarEnergy's force majeure on LNG deliveries to customers until October-early November has raised further concerns about global LNG supply just before the winter.

While China's LNG imports had increased for the second consecutive month in June, the high prices are now causing demand destruction. Although imports had been recovering since May, rebounding from an eight-year low, China is expected to see a decline of 18% in its LNG imports to around 5.2 million tons in August, according to Kpler's estimates cited by Bloomberg.