According to sources cited by “Bloomberg,” the Chinese government forbade the nation’s large-owned firms from reselling the liquefied natural gas to customers in Europe and other Asian nations.
The move, according to the news agency, aims to guarantee China’s winter heating season. The source told the news agency that “China’s main economic body, the National Committee for Development and Reform, ordered the companies Petrochina, Sinopk, and Knok to retain the shipments of (LNG) winter to use the local.”
“Bloomberg” said that China has large contracts for the purchase of LNG from two sources such as the United States, and this year Chinese traders have transformed some of these supplies to Europe due to the low domestic demand.
According to her, if the upcoming winter is harsh, Beijing’s actions could result in a decrease in the supply of liquefied natural gas to Europe and an escalation of the continent’s energy crisis.
Other sources, however, claimed that despite swift replenishment of gas stockpiles and hefty transit costs from China, European purchasers no longer find Chinese gas supplies to be as appealing.
Following the beginning of the Russian military operation in Ukraine in February of this year, the European nations and the United States imposed a number of packages of sanctions on Moscow, and the West completely rejected Russian energy resources, leading to record-breaking growth and high fuel prices.
Source: Novosti.
China halts gas shipments to Europe, according to Bloomberg
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