• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 45 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 21 hours America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
Red Sea Strikes and China's Economic Stimulus Support Oil Prices

Red Sea Strikes and China's Economic Stimulus Support Oil Prices

The Houthi's renewed maritime offensive…

China Steps Up LNG Sales To Europe As Prices Soar

China’s state energy majors have stepped up the sales of liquefied natural gas to struggling Europe, Bloomberg has reported, citing an unnamed source from the gas market.

Several cargos of U.S. LNG originally destined for China have been re-sold to Europe since the start of the year, the report noted, and right now China’s CNOOC is offering an LNG cargo from Australia’s North West Shelf for delivery in November.

Meanwhile, Chinese imports of Russian liquefied natural gas have been on a strong rise this year. Since the Russian invasion of Ukraine, China’s spending on energy imports from Russia has jumped to $35 billion, from $20 billion a year earlier, Bloomberg reported last month.

Because of strong Russian imports of liquefied natural gas, China has a comfortable surplus supply it can resell to Europe, which is hunting for gas high and low to secure its supply for the winter and is ready to pay any price for the supplies.

In a recent report on the LNG resale topic, however, the FT noted that the situation is precarious for Europe. China is selling LNG it does not need right now because of subdued economic activity. Once activity picks up, however, demand will rebound and there will be no more surplus cargos to ship to Europe.

Sluggish economic growth amid a zero-Covid policy by the central government has caused China’s LNG demand to fall by as much as 20 percent this year, after hitting a high last year that turned the country into the largest LNG buyer in the world.

So far this year, Chinese companies have sold some 4 million tons of liquefied natural gas on the international market, which is equal to about 7 percent of Europe’s gas consumption for the first half of the year, according to the FT.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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