Japan Forecast to Surpass China as World’s Top LNG Importer This Year

Japan is expected to overtake China as the world's leading importer of liquefied natural gas (LNG) this year, marking the first time it has held the top position since 2022, according to consultancies ICIS and Kpler compiled by Reuters. High prices and adequate inventory in China have limited additional purchases by Chinese buyers.

Estimates from ICIS project Japanese LNG imports to reach 62 million metric tons this year, compared to 61 million metric tons for China. Kpler also forecasts a slight lead for Japan, projecting 63 million tons of imports versus 62 million tons for China. China previously became the world's largest LNG importer in 2021 before pandemic-related restrictions returned Japan to the top position in 2022.

Overall Asian LNG import demand has dropped amid elevated spot cargo prices linked to the Strait of Hormuz crisis, which halted LNG shipments originating from the United Arab Emirates and Qatar. In China, underground gas storage reached 80% capacity by the end of September, according to Rystad Energy analyst Xiong Wei.

Analysts noted that reduced spot LNG procurement by China during the winter could ease supply pressure for other buyers across Asia and Europe that are facing tight availability and high prices for cargoes outside the Strait of Hormuz transit route.