It is impossible to say for how long China’s LNG imports will remain subdued, so this is really an opportune time for European buyers to strike years-long deals for liquefied gas. Over the short term, Europe will likely avoid stratospheric gas prices as it starts replenishing its gas inventories—these are currently so low that the continent will need to buy an additional 20 million tons of LNG this year, according to Reuters calculations cited by Bousso in his column. That translates into some 250 cargos, which, thanks to China’s weaker demand, will be more readily available for European buyers.
The tightened U.S. sanctions on Iranian oil flows under the Trump Administration’s renewed maximum pressure campaign have created chaos in Iran’s oil exports to its single biggest buyer, China.
Chinese energy imports broadly fell at the start of 2025, after last year’s record shipments of coal and gas created an overhang of supply and demand for oil continued to ease.
Crude oil imports fell 5 percent on-year in January and February to 83.85 million tons as buyers had to scout for alternative supplies after the US tightened sanctions on Russian and Iranian cargoes.
China’s diesel demand likely peaked in 2019, with gasoline consumption cresting in 2023, Ma Yongsheng, chairman of the nation’s top refiner Sinopec Group, said Wednesday. Still, the nation’s overall oil consumption hasn’t peaked yet, he said, and that’s down to rising demand for chemicals products.
China is the undisputed leader in the transition space, investing the most in wind and solar, along with EVs, and having the greatest generation capacity of the alternative sources of energy. Last year, solar capacity alone surged by 45%. Together with wind and hydropower, total low-carbon generation capacity reached 40% of the country’s total, the Chinese authorities reported last month.
An increase in ship-to-ship transfers, plus the emergence of alternative receiving terminals, led to the jump, according to traders who participate in the market and asked not to be identified because the matter is sensitive.
Dar Petroleum Operating Co. has resumed producing oil from a number of its wells in South Sudan after almost a year, people with knowledge of the matter said.
The United States has imposed sanctions on a network of people and firms accused of facilitating the sale of millions of barrels of Iranian oil to China as U.S. President Donald Trump’s administration seeks to bring Iran’s crude exports to zero.
United Energy (MENA) Limited, a wholly-owned subsidiary of Chinese independent United Energy Group (UEG), has acquired the upstream oil and gas assets held by US independent Apex International Energy in Egypt, UEG announced on Friday.
China is widely expected to stop buying U.S. LNG on the spot market and seek to swap American cargoes from elsewhere after it announced a 15% tariff on U.S. liquefied natural gas in response to the 10% American tariffs across the board.