China Buys Several LNG Cargoes For 2023, Intensifies Competition

China purchased several shipments of LNG for next year, and the earlier-than-normal LNG procurement intensifies global competition for the 2023/2024 winter period, according to Bloomberg.

• State-owned China National Offshore Oil Corp (Cnooc) bought four to six LNG cargoes this week for delivery from February to December, according to traders.
• The purchase marks one of largest spot purchases over the past year, as China’s zero Covid policy has reduced the country’s appetite for LNG.
• The earlier-than-normal LNG procurement comes as Beijing’s pivot away from Covid Zero is poised to boost fuel demand.
• Increased Chinese appetite for LNG could threaten to curb supplies to Europe and other Asian nations, with global energy markets expected to be tighter during next year’s winter period.
• JKM-TTF Jan 23 down -0.5$/mmbtu at -8.32$/mmbtu