Despite surging summer demand for electricity, China is refusing to purchase high-priced liquefied natural gas (LNG)on the spot market, opting instead to draw from long-term contracts, domestic production, and alternative energy sources.
Analysts say the move underscores Beijing’s strategic approach to energy security and cost control, as the country navigates inflationary pressures and a fragile post-COVID economic recovery. With LNG prices remaining elevated amid tight global supply, Chinese buyers—including state-owned giants—have reportedly postponed or avoided spot purchases, relying heavily on more affordable, previously negotiated supply deals.
This conservative buying behavior contrasts with other major Asian importers like Japan and South Korea, which have been more active in the spot market due to limited domestic alternatives.
China’s stance is also a sign of growing energy diversification, as the country boosts coal use, hydropower, and renewables to stabilize its grid during peak consumption months.
While this strategy protects short-term economic stability, it raises questions about supply flexibility heading into winter, when demand spikes again and competition for LNG intensifies globally.
