• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 1 day "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 3 days What China is Learning from Russia's War in Ukraine and its Consequences
  • 20 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 1 hour The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May

China Is Reselling LNG Cargoes, Driving Gas Prices Lower

Major Chinese liquefied natural gas (LNG) importers are now offering to resell some cargoes on the spot market this year, suggesting that China has stocked up more than enough to see it through the winter and easing concerns about the global gas crunch.

Natural gas prices fell on Wednesday and Thursday after reports emerged that major state-owned LNG importers in China have turned to the spot market to sell some cargoes.

The trading arm of China Petroleum & Chemical Corporation, or Sinopec, issued this week a sales tender to sell dozens of LNG cargoes for delivery between February and October, traders familiar with the matter told Bloomberg on Wednesday. According to the traders, this will be the first time that Sinopec has offered to sell such a large number of LNG cargoes, up to 45.

China National Offshore Oil Corporation (CNOOC), the largest Chinese importer of liquefied natural gas, is also tendering a cargo each month between May and November, Bloomberg reported on Thursday.

The moves from some of the biggest LNG importers in China suggest that the country has managed to stock up well on gas before the energy crunch sent natural gas prices surging at the end of last year. Milder weather in China so far this winter has also helped Beijing to see a comfortable supply of gas.

However, traders are anxious that the LNG offering could signal expectations from the Chinese state majors that the zero-COVID policy could hit gas demand in the country, Bloomberg notes.

Meanwhile, the influx of LNG cargoes to Europe offset fears of low Russian supply and the rising Russia-Ukraine tensions to send European gas prices lower on Wednesday. The LNG inflows pushed Europe’s gas prices lower, despite geopolitical trends such as increased tensions between Russia and Ukraine, delays in the Nord Stream 2 pipeline, and eastward flows on the key Yamal-Europe pipeline for the 30th consecutive day with no further exports to Europe planned from Gazprom in February.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on January 20 2022 said:
    China is swimming against the tide and a very powerful one to boot. Neither its release of crude oil from its strategic petroleum reserve (SPR) nor a reselling of LNG cargoes will drive crude oil and LNG prices respectively lower. The global oil and gas market is now in its most bullish state since 2014.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News