China resumes spot LNG buys as prices hit year-low

China has returned to the spot market for liquefied natural gas after months of subdued activity, with at least two cargoes bought last week at around $10 per million British thermal units, traders said. The move follows a 24 per cent drop in Chinese LNG imports from January to April compared with a year earlier, as high prices and weak demand prompted firms to cut purchases.

The renewed buying may support Asian and European gas prices, which have been sliding amid global economic concerns. Indian firms are also stepping up procurement, with Indian Oil securing a June delivery cargo and GAIL seeking another via tender.

Attribution: Bloomberg
Subediting: M. S. Salama