China sells excess liquefied natural gas to Europe, thereby helping it to cope with the shortage of raw materials after reducing the supply of Russian Gazprom, writes Nikkei Asia.
Due to the weak demand for gas within the country, Beijing formed excess LNG, which he now resells European countries.
“quarantines in cities led to a reduction in the demand for industrial fuel and chemicals, which resulted in a decrease in gas demand in the first half of the year. And it is unlikely that it will greatly grow in the second,” says Seulyan Lee, senior analyst in Marubeni Research Institute.
This provided an additional offer in the spot market, which Europe used to hunt.
Since the beginning of the year, China has resold more than 4 million tons of gas, which is equivalent to more than 7% of European imports. This is confirmed by the reports of Chinese companies Jovo Group, Sinopec and others. They confirmed that tankers from SPR to the European Union are reselling. Sinopec sold 45 tankers with LNG, this is about 3.15 million tons.
Experts predict that China will import 20% less liquefied gas, a low demand for raw materials inside the PRC is pushed to this. In parallel with this, the country headed for building up its own energy resources.