China has stopped sales of LNG to Europe to make sure its households have enough gas for the winter

[beijingwalker]

China has stopped sales of LNG to Europe to make sure its households have enough gas for the winter​

17 Oct 2022
Zahra Tayeb

• China told state-owned natural gas importers like Sinopec and CNOOC to halt LNG sales to Europe, per Bloomberg.
• The order to halt resales comes as Beijing looks to protect domestic gas supplies for the winter.
• China has been a crucial supplier of gas to Europe as the region faces a Russia-driven energy crisis.

Beijing has reportedly told state-owned natural gas importers to halt resales of cargoes to buyers in Europe and Asia, to make sure China has enough supply for domestic needs this winter.

The National Development and Reform Commission has spoken to Chinese energy giants PetroChina, Sinopec and CNOOC to ask them to stop the shipments of liquefied natural gas, Bloomberg reported Monday, citing people with knowledge of the matter.

An economic slowdown in China after Beijing imposed a strict zero-COVID policy dampened local demand for gas, leaving its importers with a surplus of natural gas that they resold to Europe and elsewhere.

They threw a lifeline to Europe amid its energy crisis by reselling unneeded LNG purchased from Russia. In August, an estimated more than 4 million tons of Chinese LNG was resold — or roughly 7% of Europe's imports in the first half of the year — according to a Nikkei report.


Since the Ukraine invasion, China has been snapping up Russian fuel on the cheap, after sanctions and boycotts hit the Western market. At one point, China managed to get a 50% discount on LNG supply from Russia's Sakhalin 2 export plant.

But with European gas inventories quickly filling up and shipping costs at record highs, the appeal of the LNG resales dimmed, per Bloomberg.

Another potential trigger for the move were forecasts for a small deficit in China's gas supply, the report said, as the country looks to avert its own potential energy crunch during winter's cold months.

Countries like Germany are on track to hit their winter gas inventory targets, after appealing for consumers to cut usage and scrambling to secure alternative supplies to those cut off by Russia.

The prospect of a European energy crunch sent regional gas prices soaring to historic highs above 346 euros ($336) per megawatt hour in August, as Moscow responded to Western sanctions over its war on Ukraine. Prices have since dropped more than 50%, and Dutch TTF futures on the ICE exchange were trading lower at around 136 euros per megawatt hour Monday.

China has stopped sales of LNG to Europe to make sure its own households have enough gas for the winter, report says

China has been a key supplier of natural gas to Europe, which faces an energy crunch after Russia squeezed flows of its exports to the region.

markets.businessinsider.com

 

[beijingwalker]

Sorry, Europe, self first.

 

[MH.Yang]

Why don't we increase imports, but stop exporting?

Russia and Europe need our help!

 

[Genghis khan1]

Europe was getting ready for a DP. China walks in, surprise it’s a GB.

 

[beijingwalker]

This winter got to be very cold, China needs lots of energy supply for it.

 

[beijingwalker]

China halts LNG sales to foreign buyers to ensure own supply​

17 Oct 2022 04:52PM

(Reuters) - China has asked its state-owned gas importers to stop reselling liquefied natural gas (LNG) to buyers in Europe and Asia as it seeks to ensure its own supply for the winter season, Bloomberg News reported on Monday.

China's National Development and Reform Commission has asked PetroChina Co, Sinopec and Cnooc Ltd to keep winter cargoes for domestic use, the report said, citing people familiar with the matter.

The commission could not be reached for comment. PetroChina, Sinopec and Cnooc did not immediately respond to Reuters' requests for comment.

The news comes as China's LNG importers seek to stay out of the spot market this winter as demand growth has skidded to the slowest since 2002, meaning the world's top importer of the fuel will likely avoid competing with crisis-hit Europe for supplies.

On Monday, Chinese authorities said the country would greatly increase domestic energy supply capacity and its reserve capacity for key commodities, reiterating a policy of ensuring supplies and stabilising prices of raw materials.

China halts LNG sales to foreign buyers to ensure own supply - Bloomberg News

(Reuters) - China has asked its state-owned gas importers to stop reselling liquefied natural gas (LNG) to buyers in Europe and Asia as it seeks to ensure its own supply for the winter season, Bloomberg News reported on Monday. China's National Development and Reform Commission has asked...

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