China Will Be Able to Import Record Volumes of Liquefied Natural Gas in 2024

China is entering direct competition with Europe in liquefied natural gas (LNG) imports. Zhang Yaoyu, head of LNG and new energies at China’s PetroChina International, told a hydrocarbon conference in Bangkok, Thailand, that “China’s liquefied natural gas imports could reach a record quota of 80 million tons this year.” According to Zhang, the imports will be driven by the ever-increasing demand from China’s industrial sector, which has previously imported 78.8 million tons of liquefied natural gas in 2022 and 71.2 million tons in 2023.

Following outgoing President Joe Biden’s decision to block the issuance of new LNG export licenses to US energy companies, European countries fear that China, which has excellent relations with oil and gas producing countries in the Arab world, will leave them “with nothing.” In recent days, Qatar has announced its intention to “sign several additional long-term LNG export contracts in 2024 due to increasing demand from Asia and Europe.” As Qatar’s Minister of Energy and CEO of QatarEnergy monopoly Saad al Kaabi said at the ongoing Qatar Economic Forum in Doha, “it is not difficult to sell LNG, but negotiating the specifics of the sale, such as contractual terms and prices, could be a decisive point in concluding agreements.”

According to the minister, “there is a huge demand from Asia,” and Europe must finally realize that “the good fortune of the last two unusually warm winters cannot last forever” and that “we need to radically change our foreign trade policy to ensure reliable energy supplies in the long term.” Two months ago, Qatar unveiled a maxi-program aimed at increasing LNG production by 2030 from the current 77 million tons to 142 million tons per year, after which Beijing immediately offered itself as a strategic investor.