Natural Gas Comment: China's Destocking Suggests Higher LNG Imports

China's gas destocking in April, driven by low imports and production, indicates a necessary rebound in LNG buying before winter. This trend, coupled with declining European imports, maintains upside risks for TTF and JKM gas prices.

Key Takeaways

• 1.China's natural gas inventories moved down year-on-year in April for the first time in years, despite weak domestic demand, due to low imports and production.
• 2.Upside risks to European TTF prices remain, particularly if the normalization of energy flows through Hormuz is delayed beyond late June.
• 3.China is expected to increase LNG imports sequentially through the summer to rebuild inventories ahead of winter, supported by a strong Asia LNG price premium over Europe.

Table of Contents

• Natural Gas Comment
• Disclosure Appendix
• Global product; distributing entities
• General disclosures

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