China is snapping for liquefied natural gas shipments on speculations that easing virus curbs will lead to economic activity boost and thus demand for the fuel.
After months of absence, some of the nation’s LNG importers are inquiring about buying cargoes for delivery from August onward, when demand is expected to rebound, according to traders with knowledge of the matter.
Still, spot prices would need to fall further before executing any deal, they said.
Shanghai is preparing to unwind pandemic curbs that have been in place since March leading the economy to take heavy toll. China’s LNG imports fell almost 20% in the first four months of this year due to the government’s dogged adherence to zero tolerance policies for Covid, as well as high overseas spot rates.
While the demand outlook looks better in Southern and Central China by the end of the summer, traders are still cautious since gas consumption hasn’t yet rebounded.
