China redraws the maritime LNG map and turns to America for supplies

China redrew the map of global LNG trade by sea this year, dismissing trade disputes with America, to dramatically raise the overall ton-mile scenario for LNG carriers, which have achieved record gains more than $300,000 a day in the past month.

The United States is now China’s second largest LNG supplier, having overtaken Qatar, Malaysia and Indonesia.

“China appears to have beefed up its energy needs, signing nearly a dozen long-term LNG contracts this year, half of them in the fourth quarter. Although Australia appears to be China’s largest LNG supplier this year, the United States is climbing the ladder to take the second position, according to S&P Global Platts,” said a new report from brokers Lorentzen & Stemoco.

Australia sent 25.9 million tonnes of LNG to China in the first 10 months of this year, far more than any other gas exporter. However, Australia’s share of total imports fell to 39.7% from 43% in 2020. In the first 10 months of this year, US LNG exports accounted for 11% of total imports from Australia. China, against 3% the previous year.

China’s Foran Energy last week signed a 20-year LNG supply contract with Cheniere to purchase four LNG shipments per year from 2023 to 2042. The contract was the fourth major gas contract signed between the two countries in the past few years. last months.

Earlier this year, China overtook Japan to become the world’s biggest importer of LNG, adding to a long list of commodities of which the People’s Republic is the biggest buyer.

Clarksons estimated that China’s greater reliance on non-Asian LNG suppliers this year has helped boost ton-mile demand by 30% in 2021.