China’s authorities will limit the purchase of liquefied natural gas (LNG) due to a sharp decline in demand, Bloomberg reported.
Because of Western sanctions and refusal of European countries from supplies from Russia prices for natural resources grow on the stock exchange every day. According to experts, the price of import gas is already approaching the cost of a resource in the domestic market. Senior Consultant Wood Mackenzie Jingjing Du stated that “no one wants to risk, importing gas at higher prices than the prices of supply in the domestic market.”
Therefore, the industrial sector of China is in no hurry to buy abroad. “Weak demand and exorbitantly high prices for LNG restrain the purchasing interest of importers,” said Lucia Cao, Gas analyst Bloombergnef.
Demand falls, because enterprises reduce the use of gas in an attempt to save. In addition, Shanghai and Guangzhou, the two largest ports of China for gas imports are located in the center of the coronavirus flare. Many plants in these cities are already closed on Locking, plan it to do this soon or go to a lightweight version of work.