With China’s energy shield being a key priority for Beijing, the “messages” from domestic natural gas production appear auspicious.
According to data from Kpler, China’s natural gas production reached 21.2 billion cubic meters in September, recording a vertical increase of 9.4% on an annual basis. This is the fastest growth rate within 2025, with the production of the Asian “giant” exceeding all expectations.
As a consequence of the high natural gas production, a downward revision of the estimates for China’s LNG demand followed. Specifically, the estimates for this demand were reduced by 1.2 million tons and were set at 67 million tons for the fourth quarter of 2025 (-0.4 million tons) and at 76.8 million tons for 2026 (-0.8 million tons).
As Kpler underlines, the prospects of a natural gas oversupply in China are expected to exert downward pressures on spot LNG prices in Asia in the near future.
