China’s Love of LNG Is Waning as Imports Become Too Pricey

Elevated international gas prices are capping China’s appetite for the super-chilled seaborne cargoes of the fuel, particularly purchases made on the spot market.

The shift comes as cheaper alternatives, including domestically produced gas and coal, make liquefied natural gas shipped from as far afield as Australia and Qatar less attractive. Importers are also favoring LNG secured on longer-term contracts to avoid price volatility, as well as supplies piped overland from Russia.

LNG imports have fallen this year as China faces its first annual drop in natural gas demand in four decades because of soaring prices and a tepid economy. Volumes ...