OilPrice: China for the first time refused to sign long-term agreements with US LNG suppliers

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Even Chinese economy has a saturation limit. It was achieved before Beijing entered into direct confrontation with the United States. Now the leadership of the Celestial Empire does not officially welcome the signing of long-term agreements on the supply of LNG to Chinese state gas giants by American exporters. The conflict situation that has arisen does not allow this to be done, although none of the warring parties is in a hurry to completely sever relations.

According to the analytical company Energy Intelligence, citing industry sources, Chinese authorities have sent state-owned gas companies a recommendation discouraging them from purchasing gas under long-term contracts with US residents. According to experts, the recommendation does not include LNG purchases in the US on the spot market.



Just recently, Europe was very afraid that Beijing would seize all possible and conceivable volumes of gas in the LNG market, trying to consolidate its success with favorable conditions for many years. But geopolitical tensions have changed the situation a little, making the fate of the eurozone countries easier.

The avalanche buying of all available contracts has been suspended. The presence of a huge portfolio of gas contracts from the United States, as well as increasing supplies of raw materials from Russia, allows the Chinese to take a pose and try to dictate terms that are beneficial only to themselves.

Allowing an important importer like China to have an unlimited presence on the spot market means that Beijing is still afraid of raw material shortages and shortages, and is trying to play it safe by purchasing on par with everyone else.

The PRC's radical turn in its favorite purchase of long-term contracts has shaken up the world market. Counting on China's unlimited demand, huge terminals are being built in Europe and the United States to liquefy and receive regasified fuel. If Beijing abandons its usual practice, which is included in many business plans, it will be the ruin of many investments.
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  1. smart fellow
    smart fellow
    +1
    4 November 2023 08: 22
    The presence of a huge portfolio of gas contracts from the United States, as well as increasing supplies of raw materials from Russia, allows the Chinese to take a pose and try to dictate terms that are beneficial only to themselves.
    Allowing an important importer like China to have an unlimited presence on the spot market means that Beijing is still afraid of raw material shortages and shortages, and is trying to play it safe by purchasing on par with everyone else.

    Copy-pasting from American media? The Chinese government warns of American sanctions that could cut off LNG supplies to China. Spot deliveries are one-time and there is nothing to be afraid of. Only a fool cannot understand this.
    1. insider
      insider
      0
      4 November 2023 10: 45
      That's right. In the foreseeable future, China will receive the gas it needs through pipelines. Investments in LNG terminals for the calculation of supplies to China in Europe will be covered with a copper basin. And now the EU will buy liquefied gas at seller prices (USA at the moment).
  2. strange guest
    strange guest
    0
    4 November 2023 10: 51
    Two days ago there was a text here with absolutely opposite conclusions - Europe will be left without gas, since the PRC is buying everything at any price and concluding long-term contracts.
  3. boriz
    boriz
    +1
    4 November 2023 11: 50
    Back in June, Kissinger said that he expected a number of armed conflicts between the United States and China in Southeast Asia in the near future. And it would be strange for China to give the United States leverage against itself.
    1. twice-born
      twice-born
      0
      4 November 2023 21: 38
      In June of what year did Kissinger say this?
      The Americans have been actively trumpeting this for 5-6 years now and have been provoking China and Taiwan for the same amount of time, starting with the Trump administration. He sees the primary threat to the United States not in Russia, but exclusively in China. And he is not at all for Russia!