China's LNG Trading Expansion Bolstered by US and Qatari Contracts

Chinese LNG importers are expanding their trading desks in London and Singapore to manage their growing and diversified supply portfolios in the volatile global market. Chinese companies have increased their long-term LNG contracts with Qatar and the US by nearly 50% since late 2022, with plans to add more volumes from these countries as well as from Oman, Canada, and Mozambique. Chinese majors like PetroChina, Sinopec, Sinochem Group, and CNOOC are already actively trading volatility to capitalize on their long portfolios. By 2026, Chinese companies are expected to have contracted LNG supplies of over 100 million tons per year, potentially leading to a surplus or deficit in the market. China's growing domestic output and increased piped gas from Central Asia and Russia provide a fuel base for Chinese gas companies to trade or swap cargoes when market opportunities arise.