China is behind the scenes saving Europe with Russian LNG

According to official data, China is experiencing problems with gas demand, which has fallen significantly due to tight measures to combat covid, which brought a sharp economic decline. However, the overall situation looks a little different: China is undergoing a transformation in the structure and logistics of supplies of an important energy carrier. At the same time, the volumes of deliveries from the West are decreasing, while those from Russia are increasing. OilPrice writes about this.

China purchased a total of 2,35 million tons of liquefied natural gas (LNG) from Russian suppliers in the first six months of the year, worth $2,16 billion, according to Chinese customs data. The volume of imports increased by 28,7% year on year, while the value increased by 182%. Ultimately, this means that Russia has surpassed Indonesia and the US to become China's fourth-largest LNG supplier this year.

As an OilPrice expert writes, one thing was clear right away: China wanted its relationship with Russia in the gas industry to remain as vague as possible. That is why the General Administration of Customs of the People's Republic of China stopped publishing data on pipeline natural gas trade volumes since the beginning of the year, and Li Kuiwen, a representative of the department, confirmed that this step was aimed at "protecting the legitimate business rights and interests of relevant importers and exporters." However, this measure looks ridiculous, since the Russian side often publishes data on records in the field of gas sales to China, both through pipelines and in the form of LNG.

Therefore, it is no longer a secret that China is slowly reselling Russian LNG to places where it is desperately needed more than anything else. Of course, we are talking about Europe, which is once again being saved by Russian raw materials. However, given that Russian fuel is much cheaper than any other imported energy source, enterprising Chinese traders make an incredible markup and make huge profits. At first, suppliers from the PRC traded behind the scenes, but now, due to the increased volumes of resale of Russian LNG, it has become almost impossible to hide this.

The resource that published the investigation gives a few more details:

China's JOVO Group, a major LNG trader, recently said it had resold a shipment of LNG to a buyer in Europe. A futures trader in Shanghai told the Nikkei that the profit from such a deal could be tens of millions of dollars or even 100 million.

China's largest refinery, Sinopec Group, also posted a profit and loss in an April report that it was able to cover by redirecting surplus LNG to the international market. Local media reports that Sinopec alone has sold 45 LNG shipments, or about 3,15 million tons. The total volume of Chinese LNG that has been resold is likely to exceed 4 million tons, equivalent to 7% of Europe's gas imports in half a year.

How do they solve the problem with Russian LNG for the EU? Very simple, in Chinese. Since the Chinese paid for it and the cargo was delivered to China, the gas is already ... Chinese! It can be resold and called, at least, "not Russian"

– the OilPrice expert mocks ironically.
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  1. Victor M. Offline Victor M.
    Victor M. (Victor) 1 September 2022 10: 48
    Saves. But expensive. For such grandmothers, Europe is not in this, so it will be saved elsewhere. The point is how much it will cost her.
    1. zloybond Offline zloybond
      zloybond (steppenwolf) 3 September 2022 16: 41
      It is reasonable. But teapots buy this gas from Russia at a BIG profit. A kind of comrades in the situation and nothing more. The engines refused to supply Kamaz .... sanctions ...
  2. Bulanov Offline Bulanov
    Bulanov (Vladimir) 1 September 2022 11: 10
    And the EU members could buy gas directly from Russia much cheaper. But it is better to fool the stupid eurobarbarians, forcing them to wash once a week and not the whole body. Vidio, the Lord decided to deprive them of their minds and assign them the "Executions of Egypt."
  3. prior Offline prior
    prior (Vlad) 1 September 2022 11: 15
    It is naive to believe that someone in this economic mess will refuse to make money on resale.
    In this case, China.
    Are the Chinese hucksters something significantly different from domestic hucksters who resell electricity to the fascists of the Baltic extinctions, gas to European fascists, paying extra for transit and theft to Ukrainian fascists.
    Profit and money make any fascist a PARTNER.
  4. vlad127490 Offline vlad127490
    vlad127490 (Vlad Gor) 1 September 2022 13: 14
    In Russia, capitalism, feudal lords rule the ball. Everything is for sale.
    1. Monster_Fat Offline Monster_Fat
      Monster_Fat (What's the difference) 2 September 2022 08: 51
      It has already been written a hundred times - China is taking the opportunity to buy Russian gas at "bargain" prices and resell it to everyone. Do you think that China is hated in the DPRK? And for the same reason, China pumps resources from there for a pittance, and sells its goods at three prices, and only those goods that are not included in the sanctions list. China lives only for its own benefit. By the way, a version is circulating on the Internet that the special operation in Ukraine was conceived a month earlier, but Uncle Xi asked to postpone it in order to hold the Olympics, as a result, the preparation of the special operation did not hide from the intelligence services of the West and Ukraine and they delivered a preliminary blow, defeating the pro-Russian forces in Ukraine and actually This disrupted the entire original plan of the special operation.
      1. Vladimir Tuzakov (Vladimir Tuzakov) 2 September 2022 12: 48
        why China is hated in the DPRK?

        And who told you, they found it in the US media, you won’t find something like that. Each country has its own benefits first of all. You are confusing cause with effect. You don’t make nonsense, it seems to you that you don’t understand big politics, so don’t say nonsense .. Your goal is clear - to bring discord on the Russian Federation to the PRC with any nonsense, but political literacy is not enough ...