China And India Record Sharpest LNG Import Decline In 2025
ECONOMY & POLICY

China And India Record Sharpest LNG Import Decline In 2025

China and India recorded the steepest decline in liquefied natural gas (LNG) imports among major Asian economies in 2025, as elevated global spot prices, improved domestic gas production and softer industrial demand reduced purchases, according to ship-tracking data compiled by Bloomberg. The slowdown contributed to Asia's largest contraction in LNG imports since 2022 amid supply disruptions and higher prices. Imports by both China and India fell by around 20 per cent from a year earlier, making them the principal drivers of the regional decline.

China relied more on rising domestic output and pipeline gas from neighbouring suppliers, while Indian purchases reflected strong price sensitivity and a shift towards cheaper alternatives such as coal. For India, policymakers have sought to boost local production and expand gas infrastructure, which helped cushion the impact of volatile global prices even as imports remained important for fertiliser plants, city gas networks and industrial users. Chinese buyers also resold some cargoes in response to high international prices, which helped rebalance regional flows.

The decline followed disruptions to global supply routes, notably in the Middle East, which tightened availability and pushed up spot rates, prompting Asian buyers to reduce spot purchases. Market observers noted that higher costs made imported LNG less competitive against domestic fuels and long term contracts, accelerating a tilt towards energy diversification. The trend is expected to affect investment planning across the gas value chain, including import terminals, pipeline projects and storage capacity.

Industry analysts assess that demand in both markets may recover once global prices stabilise and supply conditions normalise, although near term prospects remain uncertain. The episode underlines the importance of boosting domestic gas output, securing long term supplies and diversifying fuel mixes to enhance energy security. Policymakers and investors are likely to reassess priorities for infrastructure and contractual arrangements in light of recent volatility.

China and India recorded the steepest decline in liquefied natural gas (LNG) imports among major Asian economies in 2025, as elevated global spot prices, improved domestic gas production and softer industrial demand reduced purchases, according to ship-tracking data compiled by Bloomberg. The slowdown contributed to Asia's largest contraction in LNG imports since 2022 amid supply disruptions and higher prices. Imports by both China and India fell by around 20 per cent from a year earlier, making them the principal drivers of the regional decline. China relied more on rising domestic output and pipeline gas from neighbouring suppliers, while Indian purchases reflected strong price sensitivity and a shift towards cheaper alternatives such as coal. For India, policymakers have sought to boost local production and expand gas infrastructure, which helped cushion the impact of volatile global prices even as imports remained important for fertiliser plants, city gas networks and industrial users. Chinese buyers also resold some cargoes in response to high international prices, which helped rebalance regional flows. The decline followed disruptions to global supply routes, notably in the Middle East, which tightened availability and pushed up spot rates, prompting Asian buyers to reduce spot purchases. Market observers noted that higher costs made imported LNG less competitive against domestic fuels and long term contracts, accelerating a tilt towards energy diversification. The trend is expected to affect investment planning across the gas value chain, including import terminals, pipeline projects and storage capacity. Industry analysts assess that demand in both markets may recover once global prices stabilise and supply conditions normalise, although near term prospects remain uncertain. The episode underlines the importance of boosting domestic gas output, securing long term supplies and diversifying fuel mixes to enhance energy security. Policymakers and investors are likely to reassess priorities for infrastructure and contractual arrangements in light of recent volatility.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code