China Resells U.S. LNG To Europe

Last updated: 2023-03-04 06:14

In the first eight months of this year, nineteen European LNG tankers docked at Chinese ports.

Chinese companies are sending tankers of American liquefied natural gas (LNG) to Europe and helping European countries replenish their fuel stocks ahead of winter. This was reported by The Wall Street Journal, citing data from shipping portals and three industry sources.

According to the sources of the newspaper, due to the reduction in demand for gas in China, local companies that have concluded long-term contracts with the United States for the purchase of LNG are selling excess raw materials, earning hundreds of millions of dollars on each such supply.

In the first eight months of this year, only 19 LNG tankers docked at Chinese ports, compared to 133 such vessels in the same period last year. A significant part of their tankers were redirected to buyers in Europe, as well as Japan and South Korea, according to The Wall Street Journal.

According to the newspaper, Chinese supplies to European countries are too small to help them avoid gas shortages this winter. It is rather difficult to give an accurate estimate of the profit that China receives from gas resale deals. Agreements are private and cargo can go through many hands in the process of being sold, even when the ships are already at sea.

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