Unprecedented!China sells LNG to Europe to resolve global gas price crisis!

2022-06-04 0 By

[Original and born: to provide value thinking for the industry].Dr_sum07 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — – 3 days ago, the National Development and Reform Commission, the press conference in January, respond to the multiple economic hot spots of the people’s livelihood, one of which is very important content is natural gas heating season for what?First is on resources security, the country has not appeared “pressure” “:” from the demand for security, the implementation of the heating season contract amount more than 170 billion cubic meters, the north district heating gas get enough and stable supply of the people’s livelihood, such as gas, fertilizer production in key areas such as gas also get a good security, the country has not appeared so far “pressure” “.”The second is the price. “From the perspective of price operation, the natural gas price in the domestic market is basically stable, and even decreases in the peak period of gas consumption year on year, far lower than the global market price level.The price of gas used for people’s livelihood and other needs remained stable.”From the content of this press conference, it is basically declared that this winter campaign for supply has been a complete success, there is no need to be on tentersides for supply.There are three reasons for this: Under the background of gas shortage in 2020 and global energy crisis in 2021, energy authorities such as National Development and Reform Commission and National Energy Bureau attach great importance to winter supply protection;The three major oil and other resource parties raise resources in advance, and the “national network” created by the national pipe network fully supports the supply scheduling operation;Despite the la Nina weather impact, the temperature of this winter is far lower than the same period of last year, and the economy continues to decline in the fourth quarter, reducing industrial demand.The most striking is that the demand side is far less than expected. According to the data just released by the National Bureau of Statistics, in December, the production of natural gas was 19.2 billion cubic meters, up 2.3% year on year, and the import of natural gas was 11.65 million tons, up 3.8% year on year.Comprehensive calculation in December, natural gas consumption growth rate has been less than 3%!The end of the year, dismal end!Demand was weaker than expected, but China was well stocked, and in the last two days there have been reports of China reselling LNG on the international market.China, the world’s largest buyer of liquefied natural gas (LNG), has opened unprecedented LNG resales, easing fears of fuel shortages in global markets that sparked record prices this winter, Bloomberg reported Thursday.China’s two largest state-owned LNG importers issued tender letters this week to sell dozens of shipments to be delivered by November, the report said.With the winter demand season coming to an end, Chinese importers are betting that the country will avoid a supply squeeze and will instead sell excess LNG stocks.Cnooc has offered to sell one carload of LNG a month between May and November, while Sinopec is seeking to sell as many as 45 carloads by October, according to traders familiar with the matter.The auction represents about 4% of China’s total LNG imports last year and is one of the country’s largest LNG sales to date.China spent much of last year buying LNG on the spot market to supply the country and replenish stocks in preparation for this winter.But mild weather has left a surplus of bookings.Reselling goods to the spot market, where prices are higher, could provide both companies with substantial revenues.As a result, the Spot JKM price of Asian LNG fell below $20 to $18.9 /mmbtu.At the other end of the spectrum, in still-troubled Europe, gas prices are still rising.TTF rose $0.445 / mmbtu in February to $25.143 / mmbtu, led by European price talks and higher coal prices.According to the European Gas Infrastructure Association, only 56% of gas is in storage at the start of 2022, compared with 73% 12 months earlier.Therefore, the LNG that China resells to the international market will most likely go to the European continent.European gas prices have risen more than 600% since 2021;The average price of electricity in major European countries has exceeded 300 euros per megawatt hour, and many countries are at historic highs, having stayed below 50 euros per megawatt hour in the same period of 2019.Russia has been Europe’s main gas importer, and geopolitics have so far prevented nord Stream 2, a gas pipeline linking Germany and Russia, from opening, making supplies to Europe even more difficult this winter.Europe has been in the shadow of the energy crisis since last year.China has successfully won the battle to ensure supply in the winter. Sinopec and CNOOC should be able to resell their LNG to the international market. On the one hand, they can achieve a fairly objective profit margin, and at the same time, they can easily save Europe from the disaster.Chinese people do good without being famous.——– Further reading: 1, the giant crocodile war!CNPC Kunlun sold assets to obtain a huge sum of 14.8 billion yuan to explore the gas terminal market