China Buying Huge Amounts Russian LNG

https://www.scmp.com/economy/economic-indicators/article/318…

Despite a suppressed appetite for energy amid its economic downturn, China has been absorbing more Russian natural gas so far this year, while imports from most other sources declined.
In the first six months of the year, China bought a total of 2.35 million tonnes of liquefied natural gas (LNG) – valued at US$2.16 billion, detailed Chinese customs data released on Wednesday showed.
The import volume increased by 28.7 per cent year on year, with the value surging by 182 per cent, according to the Post’s calculations based on the customs figures.

https://www.zerohedge.com/markets/china-aggressively-reselli…
What was behind this bizarre surge in Russian LNG imports, analysts speculated? After all, while China imports over half of the natural gas it consumes, with around two-thirds in the form of LNG, demand this year had fallen sharply amid economic headwinds and widespread shutdowns. In other words, why the surge in Russian LNG when i) domestic demand is just not there and ii) at the expense of everyone else?

Well, we now know the answer: China has been quietly reselling that evil, tainted Russian LNG to the one place that desperately needs it more than anything. Europe… and of course, it is charging a kidney’s worth of markups in the process.

As the FT reported recently, “Europe’s fears of gas shortages heading into winter may have been circumvented, thanks to an unexpected white knight: China.” The Nikkei-owned publications further notes that “the world’s largest buyer of liquefied natural gas is reselling some of its surplus LNG cargoes due to weak energy demand at home. This has provided the spot market with an ample supply that Europe has tapped, despite the higher prices.”

What the FT ignores, perhaps intentionally, is that it’s not “surplus” - after all, if it was Chinese imports of Russian LNG would collapse. No - the correct word to describe the LNG that China sells to Europe is Russian.

Oh yes them sanctions are working.LOL

6 Likes

" The Nikkei-owned publications further notes that “the world’s largest buyer of liquefied natural gas is reselling some of its surplus LNG cargoes due to weak energy demand at home. This has provided the spot market with an ample supply that Europe has tapped, despite the higher prices.”

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Is the amount of LNG that China is selling to the EU significant compared to US exports? How about posting some numbers to show the true situation of Chinese LNG exports compared to the big picture!

Jaak

The Nikkei-owned publications further notes that "the world’s largest buyer of liquefied natural gas is reselling some of its surplus LNG cargoes due to weak energy demand at home. This has provided the spot market with an ample supply that Europe has tapped, despite the higher prices.

Is the amount of LNG that China is selling to the EU significant compared to US exports?

IIRC, Chineses exports of LNG are about 7% versus 35% from the US.

DB2

IIRC, Chineses exports of LNG are about 7% versus 35% from the US.

DB2

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Link please.