China is rapidly increasing domestic natural gas production, impacting global LNG demand forecasts. Previously struggling, China’s shale gas production is now booming, with a 7.1% increase last year. This rise, driven by Sichuan Basin shale gas, is expected to reach 263 billion cu m in 2025.

The surge in domestic production has led to a decline in LNG imports, with Kpler predicting a further decrease in Chinese LNG demand this year. This trend could disrupt new LNG capacity plans and prices, potentially oversupplying the market by 2030. China’s move towards energy independence is reshaping global energy markets.

Competition in the LNG market is intensifying, with China halting U.S. imports due to tariffs but increasing Russian LNG imports. Growing Russian exports could impact market forecasts, especially after the EU’s ban on Russian energy imports redirects flows to China and India. Pipeline imports are also set to rise, reducing demand for LNG further.

Despite China’s efforts to boost domestic gas production and reduce import dependence, import decisions will ultimately be driven by price. This gradual shift may have a limited impact on the global LNG market compared to oil demand trends. Lower prices and rising domestic production could alter the dynamics of LNG trade in the coming years.

Read more at Yahoo Finance: China’s Gas Growth Casts a Shadow over LNG Demand