China’s LNG Strategy Pays Off with Record Re-Exports in 2026

In February of this year, Chinese companies set a record. They re-exported 749 thousand tonnes of liquefied natural gas. This corresponds to nearly one billion cubic meters of gas in regasified form and roughly a dozen large-capacity LNG carriers.

Photo: photozou.jp by 青空白帆, https://creativecommons.org/licenses/by/2.1/

LNG tanker

This figure became a new record for the entire history of industry statistics. In relative terms, it accounted for 19 percent of total LNG imports (3.95 million tonnes according to the General Administration of Customs of China), which appears quite significant.

At the same time, only the gas that entered the customs territory of the country was taken into account. Volumes that were redirected by Chinese buyers to other recipients while LNG carriers were still en route from the seller were not included.

Distribution of Shipments and Key Buyers

Large-capacity shipments were received by South Korea (five to six cargoes), Thailand (three cargoes), and Japan. The remaining buyers accounted for smaller shipments or bunkering operations, reports Interfax.

For China, pipeline gas is becoming an increasingly important source of supply compared to LNG. In February, pipeline gas provided 52 percent of external supplies, and taking into account LNG re-exports — 57 percent.

Import Volumes and Supply Structure

In total, in February 2026, China received 5.51 billion cubic meters of pipeline gas, which is one percent more than in February 2025. It also received 5.13 billion cubic meters (3.95 million tonnes) in the form of LNG, which is 21 percent less.

Russia's Gazprom supplied more than three billion cubic meters via the Power of Siberia pipeline. Other pipeline gas suppliers saw their export capacities reduced due to growing domestic demand during the heating season.

Supplies from Turkmenistan remained stable year-on-year (2.1 billion cubic meters), although this is about one-tenth less than what the country is currently capable of supplying.

Exports from Kazakhstan remained at the same low level as in January (around 100 million cubic meters), while no gas from Uzbekistan was delivered to China for the second consecutive month.

Impact of Global LNG Market Conditions

On the global LNG market, the main factor this past winter was cold weather in Europe. European buyers, due to difficulties in accessing Russian supplies (which they themselves created), offered significant premiums over Asian prices in their competition for additional LNG cargoes.

In February, Europe purchased nine million tonnes of LNG (plus ten percent), while Turkey bought 2.3 million tonnes. Supplies of Russian LNG to China in the first two months of 2026 (862 thousand tonnes) were roughly at the level of January-February 2025 (909 thousand tonnes).

March Trends and Market Adjustment

After such a detailed review of the February supply situation, that is, before the attacks by the United States and Israel on Iran, we move to the current situation.

There is, of course, no data for April yet. But there is data for March. And here, China was also doing quite well in terms of gas re-exports.

China's LNG imports last month, according to estimates by analytical companies Kpler and ICIS, fell to 3.68-3.7 million tonnes. This is the lowest monthly level since April 2018, and the decline compared to March 2025 amounted to 25 percent.

This, as is easy to assume, was influenced by the conflict in the Middle East. The blocking of the Strait of Hormuz and the halt of supplies from Qatar led to an 85 percent increase in LNG prices on the Asian market.

Chinese buyers preferred not to compete for expensive spot cargoes (that is, short-term contracts), using reserves from storage and increasing pipeline purchases instead. They have such an opportunity, unlike many of their neighbors.

Record Re-Exports and Strategic Outcome

Against the backdrop of falling imports, China increased the resale of liquefied natural gas to other Asian countries. In March, between eight and ten cargoes were reloaded, which became another record.

The main recipients were South Korea, Thailand, Japan, India, and the Philippines. This became possible due to China's long-term contracts and gas reserves, which allowed it to profit from high prices.

This is what competent diversification of supplies means.