China may replace Russia as a gas supplier to the EU


Almost all volumes of liquefied natural gas have been purchased in the world. For many years to come, there were no free reserves left. Billions of cubic meters have been snapped up by Chinese companies that have bought gas under futures contracts even from sea terminals in Mexico that have not yet been built. In this aspect, Europe simply does not have a chance to receive additional supplies from the US or Qatar, since traders from the PRC have intercepted all contracts.


However, there is one way out for the EU - it is the worst possible, but at the same time there is no alternative, if supplies from Russia stop or drop significantly for one reason or another. This scenario provides for the virtual replacement of Russia by China as the main supplier of raw materials to Europe. Taking into account the huge volumes of long-term contracts concluded, this may well be a viable option. In this case, the PRC turns into a gas hub, which does not produce itself, but actively trades, and at a fabulous price. And, most likely, it will be so, because China itself, even taking into account its growing economics, such volumes are useless.

In Europe, they are still waiting for help from the United States and, not receiving it, they are forced to buy gas from Asian suppliers at a double, maximum possible price.

China is still signing countless contracts to buy LNG. Lost count!

- writes energy analyst Signa Ashank on his Twitter account.

The terms of these contracts range from ten to twenty years. Even the Mexico Pacific terminal under construction on the Pacific coast in Mexico (although the supply field is located in the USA, in Texas, the Permian Basin (Permian)) as soon as it is ready, it will supply products only to China. By the way, in this case there will be a price guarantee: the cost will be tied to the quotes of the American Henry Hub, the fluctuations of which are noticeably less than in Asia or the EU. This approach will enable Chinese buyers to get even more profit from price fluctuations in these regions.

This situation can turn into quite serious problems for the Russian export industry in the field of energy resources. Firstly, Chinese traders, having bought almost all possible volumes of LNG in the world, simply will not need fuel from Russia to supply the domestic market. And, secondly, sooner or later, the Chinese "partners" will understand that it is necessary to start preventing the supply of raw materials from the Russian Federation to Europe in order, obviously, to sell their excess volumes at a double price. Competition, as they say, and nothing personal.
  • Used photographs: JSC "Gazprom"
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  1. gorenina91 Offline gorenina91
    gorenina91 (Irina) April 3 2022 09: 38
    -4
    Firstly, Chinese traders, having bought almost all possible volumes of LNG in the world, simply will not need fuel from Russia to supply the domestic market. And, secondly, sooner or later, the Chinese "partners" will understand that they need to start preventing the supply of raw materials from the Russian Federation to Europe in order, obviously, to sell their excess volumes at a double price. Competition, as they say, and nothing personal.

    - Finally - the beginning of some "reach" - they began to at least plunge into reality!
    - But to this it should be added that China will now have an additional (if not the main) and unlimited gas reserve at ridiculous prices, which Russia, Turkmenistan and Kazakhstan will provide it!
    - To fans and accomplices of the "Power of Siberia" - "Vivat" !!! - It is also necessary to bungle the "Power of Siberia-2" for China as soon as possible!
    - Today, China can easily resell the received Russian gas - at exorbitant prices - it can liquefy it and drive it to anyone - even South Korea and Japan, etc. - even at a cheaper price than Russia (but this is at the very beginning - not yet will force Russia out of this market!-But then it will sharply raise prices!).
    - So all the sanctions from the United States and the West against Russia will seem simply ridiculous when China throws (and begins to squeeze) its economic stranglehold on Russia! -Now it is not profitable for China yet! - But tomorrow !!!
    1. AlexandrS Offline AlexandrS
      AlexandrS (Alexander Sergeev) April 3 2022 22: 55
      -1
      What pathetic attempts)
    2. gunnerminer Offline gunnerminer
      gunnerminer (gunner miner) April 4 2022 17: 13
      -2
      The PRC acts on the basis of its own interests. For a gas turn to the East, Gazprom needed five years, in conditions before the Special Operation. After the start of the operation, it will take 10 years. Taking into account all the factors and circumstances that have arisen. For the PRC, the issue is the availability of a fleet of LNG gas carriers. And the availability of authorized crews, especially top officers. Chinese shipbuilders can already build LNG gas carriers themselves.
  2. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) April 3 2022 10: 21
    -1
    All volumes from among those being developed and not subject to sanctions have been bought out, but there are mothballed and unprofitable at low prices.
    There is an opportunity to increase the production of traditional suppliers from Libya, Algeria, Nigeria, Angola, Iran, Venezuela, Turkmenistan, Kazakhstan, North America.
    Huge undeveloped deposits of Israel, Egypt, Cyprus, South America, continental sea shelves,
    Exploration work on vast unexplored territories of all continents. Finally, there are potentially large reserves of shale gas in the EU itself and in many state entities of the world, including the Russian Federation.
    The problem is not in the availability of oil and gas, but in the cost of their development and delivery, and of course in time - a spoonful for dinner is expensive.
    A decrease in sales leads to a decrease in production, an increase in unemployment, a budget deficit, and so on. Therefore, the Russian Federation will strive to increase sales, but how is the question. There are many options, but in any case, you will have to share income with front state entities and intermediaries, and compensate for the costs of their services by increasing production and creating an integral pipeline system, connecting the western, eastern and southern sections into a single pipeline network.
    Gas problems are battles of local importance on a huge front of confrontation with the West.
    The main strategic task is the creation of an alternative international financial system - stock exchanges, banks, banknotes, arbitration courts, rating agencies and other related structures.
    This leads to division and confrontation on a global scale, which fundamentally contradicts the PRC's policy aimed at lifting restrictions and lifting sanctions that hinder economic development and building a society with a common destiny.
    1. gorenina91 Offline gorenina91
      gorenina91 (Irina) April 3 2022 10: 47
      -4
      The main strategic task is the creation of an alternative international financial system - stock exchanges, banks, banknotes, arbitration courts, rating agencies and other related structures.

      - Whoo! - It's easier to take Mariupol and defeat the "Donetsk cauldron" (90 thousand boilers of the Armed Forces of Ukraine) !!!

      Finally, there are potentially large reserves of shale gas in the EU itself and in many state entities of the world, including the Russian Federation.

      - And about the production of shale gas - especially in Europe (EU) - you should generally forget! - Who will allow this in Europe at all - rather they will "switch to coal" again!
      - And China acted very cleverly - to him (China) - to "push through" the construction of "Power of Siberia-2" in Russia - and China "for centuries" will be provided with cheap gas! - As many as three countries (not very friendly with each other) - Russia, Turkmenistan, Kazakhstan - just race to supply him with the cheapest gas! - Moreover - none of these "suppliers" - can raise the price of gas - and they obediently go "in the same harness"!
    2. gunnerminer Offline gunnerminer
      gunnerminer (gunner miner) April 4 2022 17: 15
      0
      The main strategic task is the creation of an alternative international financial system - stock exchanges, banks, banknotes, arbitration courts, rating agencies and other related structures.

      Some time ago, there was a lot of talk about the creation of an oil and gas exchange in the northern capital. And where is she?
      1. kapitan92 Offline kapitan92
        kapitan92 (Vyacheslav) April 4 2022 20: 57
        +2
        Quote: gunnerminer
        Some time ago, there was a lot of talk about the creation of an oil and gas exchange in the northern capital. And where is she?

        Joint Stock Company "St. Petersburg International Commodity Exchange" (JSC "SPIMEX") is the largest commodity exchange in the Russian Federation, established in May 2008. It organizes exchange trading in the markets of oil products, oil, gas, liquefied gas, timber and building materials, mineral fertilizers, as well as in the futures market, about 99% of the volume of organized trading in these market segments in the Russian Federation passes through it.

        The Information Department of PJSC Gazprom told journalists that the company had indeed resumed from October 13, 2021, participation in gas trading at the SPIMEX in the daily supply mode.

        "All gas suppliers, including Gazprom, have equal conditions for working on the exchange market and decide to participate in the auction based on the availability of the necessary gas resources and the current market situation. The company plans its participation in the future, taking into account these factors," - commented on the situation in the company.

        As reported, in August the concern limited its participation in intraday trading at SPIMEX due to an accident at the Urengoy plant for preparing condensate for transport. In September, the monopoly did not have gas for the exchange as a result of large excess demand in Russia due to early cold weather.

        This is 2021 stuff.
        https://www.interfax.ru/russia/797189
        I see that the tower in Kyiv has been restored, all the "partners" are coming up again. laughing
        1. gunnerminer Offline gunnerminer
          gunnerminer (gunner miner) April 4 2022 21: 17
          0
          Read about the exchange https://www.interfax.ru/business/745131
          The volumes are small. We sell to Indians with a 25% discount.
          1. kapitan92 Offline kapitan92
            kapitan92 (Vyacheslav) April 4 2022 21: 28
            0
            Quote: gunnerminer
            Read about the stock market

            I know much more about her work than you do.

            Quote: gunnerminer
            Volumes are small.

            Sufficient not to produce speculators.

            Quote: gunnerminer
            We sell to Indians with a 25% discount.

            So that's what it takes, for now.
            1. gunnerminer Offline gunnerminer
              gunnerminer (gunner miner) April 4 2022 22: 44
              0
              I know much more about her work than you do.

              From this fact, the value of the "exchange" does not increase. There are many more speculators, their opportunities are wider.

              So that's what it takes, for now.

              There is no choice, time is running out, unplanned government spending is not just growing, it is jumping.
  3. dub0vitsky Offline dub0vitsky
    dub0vitsky (Victor) April 3 2022 19: 06
    -1
    And, secondly, sooner or later, the Chinese "partners" will understand that they need to start preventing the supply of raw materials from the Russian Federation to Europe in order, obviously, to sell their excess volumes at a double price. Competition, as they say, and nothing personal.

    The article was written simply by a provocateur who does not think anything about market relations. Sell ​​gas at double the price and thus squeeze Russia out of the gas market.
  4. Yuri Neupokoev Offline Yuri Neupokoev
    Yuri Neupokoev (Yuri Neupokoev) April 3 2022 22: 28
    -1
    Why didn't the author sign the text? We would have looked, "what is his life credo." I only used a photo of Gazprom ... Strange.
    And the fact that China is trying to buy all the resources to the maximum and in advance is very true of him. Very soon, many countries will be buying food and other real goods as well. We, on the other hand, need to be engaged in the development of our production yesterday and establish ties with Asia, Africa, LA (all those who are not under the impudent Saxons). But without a real purge of our elite, everything will be very slow, at least.
  5. Ulysses Offline Ulysses
    Ulysses (Alexey) April 4 2022 21: 47
    0
    It will be funny to watch how unfortunate Europeans will buy volumes of "Chinese gas", previously bought by China from Russia and transported to Europe through the same "Nord Streams".
    Expensive.. wassat

    And after all, "People" hides.
    The main thing is not to buy from Putin .....