China LNG Imports Could Hit Record Levels in 2024

Model of LNG tanker is seen in front of China's flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Model of LNG tanker is seen in front of China's flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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China LNG Imports Could Hit Record Levels in 2024

Model of LNG tanker is seen in front of China's flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Model of LNG tanker is seen in front of China's flag in this illustration taken May 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

China's liquefied natural gas imports could hit record levels in 2024, a PetroChina official forecast on Wednesday.

China is the world's largest LNG buyer, while PetroChina is the largest natural gas importer in China.

Zhang Yaoyu, global head of LNG and new energies for PetroChina International, said at an industry conference in Bangkok that his company is seen shipping between 78-80 million metric tons of LNG this year, with the industrial and commercial sectors driving demand.

Zhang's forecast would be a 9-12% rise from the 71.2 million metric tons imported in 2023, according to China's customs data.

China imported a record 78.8 million metric tons in 2021.

“Based on the first quarter data, that's achievable,” said Zhang.

He said China has shipped nearly 20 million tons of LNG already in the first quarter of this year, with the chemicals, paper, steel and cement industries driving demand growth.

“Besides, we haven't seen winter (demand) yet.”

For power plants in China, however, LNG prices would need to drop to below $6 per million British thermal units (mmBtu) for consumption to pick up, added Zhang, who spoke to Reuters on the sidelines of the Future Energy Asia conference.

Asia spot LNG prices had traded as low as around $8/mmBtu in February this year, its lowest in nearly three years, amid weak demand in Asia and Europe. But hotter weather and supply concerns have since pushed prices up to $10.50/mmBtu.

Zhang said he expects coal to support grid stability in China and did not see greater LNG adoption in power generation amid rising renewable energy use.

“You can't solely rely on renewable power. The reliability, that's not going to be easy. But having said that, the base is still coal. So (in the) short term, no worries.”

On Wednesday, a coal industry association said a sharp increase in China's hydropower generation from late April is likely to continue, leading to lower-than-expected demand for coal in power plants.

Hydropower output in the last third of the month was up 42.9% year on year and is “very likely to maintain double-digit growth,” China Coal Transportation and Distribution Association analyst Feng Huamin told a market seminar, adding that drought-stricken Yunnan province in the south has had more rain recently.

“Following the beginning of the flood season, hydropower's squeeze on thermal power generation will gradually become more obvious,” Feng said, adding that the continued ramp-up in renewable capacity will also eat into coal's share of power generation.



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.