After Europe, a Cold Wave Hits China... Will LNG Prices Rise?

China's LNG Imports Rise 8% in December

Yonhap News Agency

There are forecasts that the price of liquefied natural gas (LNG) will rise. This is because a cold wave is expected in Northeast China following Europe, which is likely to significantly increase demand.

According to Bloomberg on the 12th (local time), temperatures in some parts of Northeast China this week were 6 degrees lower than the seasonal average. The unusual cold wave is expected to spread across all of China next week. As a result, the Korean Peninsula and Japan are also expected to be affected by the cold wave.

With a cold wave forecast in China, one of the world's largest LNG importers, concerns have grown over a potential rise in LNG prices. Previously, an abnormal cold wave in Europe caused benchmark LNG prices to surge sharply for the first time in seven months. The cold wave in China could further drive this upward trend.

LNG imports in China have already begun to rebound. According to a report by ENN Group, China's LNG imports in December reached 7.71 million tons, up 8% compared to the previous year.

However, the increase in China's domestic natural gas production and pipeline supply is expected to somewhat ease the rise in LNG demand. Some Chinese buyers still have sufficient inventory levels.