The Russian bear clears the field and the Chinese tiger takes advantage of the situation. Chinese companies offer significant quantities of liquefied natural gas (LNG) on world markets, which local companies are unable to use due to the economic slowdown following the covid-19 pandemic. Several ships with this raw material have already arrived in Europe during the year, and other companies are joining, writes the Bloomberg agency.
Cnooc, one of China’s largest energy giants, is joining competition from Sinopec and PetroChina in offering its LNG to global markets. According to information from traders, Sinopec and PetroChina have already sold several shipments of LNG to Europe during the year.
According to Bloomberg, this gas could provide decent relief to European markets reeling from the energy crisis. Due to the crisis, the prices of this commodity are moving at an unprecedented level in the EU.
China was the world’s largest buyer of LNG in 2021, but the country’s strict zero-tolerance policy on covid-19 and the country’s slowing economy have seen demand fall by more than 20 percent this year.
Even smaller Chinese LNG exporters such as ENN Energy Holdings and JOVO Group are actively offering to sell their gas supplies to Asian ports.
In addition, Cnooc is speeding up drilling work in the South China Sea, where gas deposits are located. According to Bloomberg, they could get gas from them within three years.
Russian gas giant Gazprom said on September 2 that maintenance had revealed an oil leak at a compressor station on the Nord Stream 1 gas pipeline and that the pipeline would remain out of service indefinitely. The Kremlin later said that gas would start flowing through the pipeline only after Western countries lift sanctions imposed on Russia over its invasion of Ukraine. The EU is solving how to deal with gas shortages and high gas prices.