China transforms into global LNG reseller amid domestic demand shift

China is transitioning from the world’s largest liquefied natural gas (LNG) importer to a significant global reseller. This shift is driven by a widening gap between the country’s growing long-term supply contracts and weakening domestic demand.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), Chinese companies resold an estimated 17–19 million tonnes of LNG in 2025. Between 2021 and mid-2026, these companies generated approximately $4.6 billion in estimated profits by reselling LNG sourced from the United States and Australia.

Domestic LNG imports fell to roughly 66–68 million tonnes in 2025, down from a peak of 79 million tonnes in 2021. This decline is attributed to increased domestic gas production, expanded Russian pipeline deliveries, and a reduced reliance on imported gas due to renewable energy growth.

Chinese firms, including PetroChina and CNOOC, are increasingly acting as international portfolio traders. By utilizing flexible contracts, particularly from the US, companies can redirect cargoes directly to markets in Europe or Asia to capture price differentials without the gas ever entering China. In the first half of 2026, approximately 47% of LNG cargoes in Chinese trading portfolios were redirected to external customers.