China LNG imports fall as supply mix shifts
September 2, 2026
Natural gas prices moved higher across all three major benchmarks last week, with JKM and TTF supported by tighter LNG supply-demand conditions and geopolitical uncertainty, while Henry Hub gained on expectations of stronger autumn and winter demand.
The Northeast Asian JKM spot LNG price rose to the mid-USD 24s/MBtu on 28 August, compared with the high-USD 23s/MBtu on 21 August. The assessment covered 24–28 August with October delivery.
Early in the week, prices strengthened as the narrowing spread with European gas reduced opportunities for U.S. LNG arbitrage into Asia. Competition for cargoes also increased as European buyers sought supplies for winter and concerns surrounding the Middle East supported buying interest.
JKM temporarily fell into the high-USD 22s/MBtu on 26 August after reports that Iran and Oman were working on a framework concerning navigation through the Strait of Hormuz. Prices subsequently recovered as supply-demand conditions tightened and South Asian spot demand strengthened.
By 28 August, additional winter procurement from Asian buyers, including Japan, helped lift JKM back into the mid-USD 24s/MBtu. Japan’s LNG inventories for power generation stood at 2.38 million tonnes as of 23 August, up 0.11 million tonnes week on week.
European TTF gas prices increased to USD 23.4/MBtu on 28 August, from USD 22.6/MBtu the previous weekend.
Prices initially strengthened amid geopolitical concerns involving the U.S. and Iran, reaching USD 23.4/MBtu on 24 August, their highest level since January 2023. They subsequently eased as Norwegian pipeline supply and LNG inflows improved near-term availability.
Later in the week, competition with Asian LNG buyers and continued Middle East uncertainty pushed prices higher again. Unplanned maintenance at Norway’s Troll and Asgard gas fields also affected supply conditions.
EU underground gas storage reached 64.4% on 28 August, compared with 62.3% the previous weekend. Storage was 16.7% below the same period last year and 21.1% below the five-year average.
U.S. Henry Hub prices increased to USD 2.9/MBtu on 28 August, compared with USD 2.8/MBtu on 21 August.
Prices initially slipped as growing natural gas production exceeded the increase in power-sector demand, reaching USD 2.7/MBtu on 25 August. They subsequently recovered as expectations for stronger autumn and winter demand increased.
Henry Hub reached USD 2.9/MBtu on 28 August following the rollover to October delivery and an EIA report showing a smaller-than-expected increase in inventories.
U.S. natural gas inventories stood at 3,184 Bcf as of 21 August, up 15 Bcf week on week, 0.9% below the same period last year and 5.5% above the five-year average.
Source: JOGMEC
Updated: 31 August 2026
