China has asked its state-owned gas importers to stop selling LNG to energy-starved buyers in Europe, Bloomberg reports
Chinese authorities have banned major state-owned companies in the country to resell LNG (liquefied natural gas) to buyers in Europe and other Asian countries to ensure the winter heating season in their country, Bloomberg reported citing sources.
"The National Development and Reform Commission, the country's top economic body, has ordered PetroChina Co, Sinopec and Cnooc Ltd. to leave winter cargoes for domestic use," agency sources said, referring to LNG.
State-owned companies and the regulator have not yet commented to the agency on this information.
China has large contracts to buy LNG from exporters such as the US, and this year local traders diverted some of those shipments to Europe because of low demand at home, according to an article in the foreign publication.
Comment: Unlike Europe, China has a number of options, and funds, with which to source its energy supplies, and yet it is
still concerned it might not have sufficient stock to make it through the tumultuous period up ahead (which will likely continue well after winter). One could consider this a rather ominous move, and that China's actions should probably be heeded, because, as just one example of its governments rather prescient policies, it was subsidizing its farmers with billions of dollars way
back in June of 2021 for fuel and fertilizer, commodities that were soon plagued with with soaring prices and shortages.
Like, to the Biden administration's threat to deprive all Americans currently working in Chinese semiconductor manfucaturing companies of their US citizenship if they don't quit.