Since late August, China’s strict zero-Covid policy has resulted in a full or partial lockdown of more than 70 cities. This has reduced the energy requirement.
What happened: Shenzhen, one of the busiest container port cities in the world, continues to experience lockdowns.
This has resulted in manufacturing and manufacturing demand for China continuing to fall sharply. Chinese companies that have long-term contracts for US liquefied natural gas (LNG) are now selling surplus energy imports at a profit, the Wall Street Journal reported.
Buy South Korea, Japan and Europe. The recent shipment to Europe is believed to have generated between $110 million and $130 million for an LNG shipment.
As of 2022, only 19 US LNG ships docked in China, compared to 133 ships last year, the report said.
After Europe gobbled up gas imports in the first half of the year, they were able to successfully increase gas storage utilization to 77%. If current forecasts continue, Europe will have 80% gas storage capacity by November, the Nikkei reported.
Why it matters: Cheniere Energy Inc. LNG signed with China’s ENN Natural Gas and Sinochem International Corp. the delivery of 0.9 million tonnes of liquefied natural gas per year per company, to take effect in July 2022, with delivery scheduled for October 18.
About 7% of Europe’s gas imports in H1 came from Chinese LNG, equivalent to 4 million tons of resold gas.
According to the US Energy Information Administration, Russian gas supplies to Europe are at a 40-year low as Europe becomes increasingly dependent on Beijing’s energy imports to avoid a freezing winter.
In September, Gazprom announced that it would use the Russian ruble and Chinese yuan as payment for gas exports instead of the euro to attract Western…
