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China explores long-term LNG supply outside the Persian Gulf

China imported about 100,000 tons of LNG from Qatar in the second quarter, down from as much as 4.7 million tons a year earlier, as Gulf disruptions reduced deliveries.

Reported · Written up by our desk · Energy

China’s state LNG importers are seeking long-term gas supplies from exporters that do not rely on the Strait of Hormuz, according to sources familiar with the discussions cited by Bloomberg.

The move aims to reduce China’s exposure to Persian Gulf delivery risks after the Middle East conflict led to the closure of the Strait of Hormuz and damaged Qatari facilities.

China sourced nearly 30% of its LNG supply from Qatar last year, but imports have since fallen sharply. In the second quarter of this year, China imported only about 100,000 tons of LNG from Qatar, down from as much as 4.7 million tons in the same period last year, based on ship-tracking data compiled by Bloomberg.

Bloomberg’s sources said China is not looking to cancel binding long-term contracts with Qatar. Instead, Beijing is exploring options, with some major buyers including PetroChina and Sinopec in talks for potential deliveries starting before 2030 for at least ten years.

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