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 Russia’s military operation in Ukraine, 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.
MA/PR
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