China became the world’s largest LNG importer in 2021
China’s imports of LNG in 2021 were the world’s largest, according to our analysis based on data from Global Trade Tracker and China’s Administration of Customs. Prior to 2021, Japan had been the world’s largest LNG importer for 51 years, according to data from Cedigaz. In 2021, China’s LNG imports averaged 10.5 Bft3d, a 1.7 Bft3d (19%) increase over 2020 and 0.8 Bft3d more than Japan’s LNG imports. LNG imports in Japan were flat year-on-year, averaging 9.7 Bft3d in 2020 and 2021, according to data from Japan’s Ministry of Finance.
Since China began importing LNG in 2006, China’s LNG imports have grown steadily every year, except in 2015. Growth in China’s LNG imports has been supported by the rapid expansion of LNG import capacity, which has reached an estimated 13.9 Bft3d last year. By the end of 2022, China’s regasification capacity is expected to expand by an additional 2.8 Bft3d, for a total of 16.7 Bft3d, according to data by S&P Global Platts.
China’s natural gas imports, both by pipeline and as LNG, accounted for nearly half (46%) of China’s total natural gas supply (35.5 Bft3d) in 2021, an increase from 15% in 2010. Last year, natural gas imports by pipeline provided 16% (5.7 Bft3d) of total supply, while LNG imports accounted for 30% (10.5 Bft3d). In 2021:
China imported natural gas by pipeline from five countries: Turkmenistan (3.2 Bft3d), Russia (1 Bft3d), Kazakhstan (0.6 Bft3d), Uzbekistan (0.5 Bft3d) and Myanmar (0.4 Bft3d).
China imported LNG from 25 countries. The six largest suppliers—Australia, the U.S., Qatar, Malaysia, Indonesia, and Russia—provided 8.9 Bft3d, or 85% of total LNG imports.
The remaining 15% of LNG was imported from 6 countries in Africa (0.6 Bft3d), or 6% of total LNG imports), 3 countries in the Middle East (0.4 Bft3d, or 4%) and 10 other countries from the rest of the world (0.6 Bft3d, or 5%).
Rapid growth in China’s natural gas production and imports has been driven primarily by government policies promoting coal-to-natural gas switching in an effort to reduce air pollution and meet emissions targets. In 2021, China’s domestic production reached 19.3 Bft3d, accounting for 54% of the country’s total natural gas supply, while pipeline and LNG imports combined were at 16.2 Bft3d (46%). In March 2022, the Chinese government released its 14th Five-Year Plan (2021–2025), which set domestic natural gas production target at 22.3 Bft3d by 2025, an increase of 3.0 Bft3d compared with 2021.
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