China Recovery to Increase Competition for LNG Supplies

Europe may not be able obtain cargoes originally intended for China like it did in 2022 according to Cheniere Energy.

• “China has contracted for a lot of volume, and how China recovers — both Covid and this 5% GDP growth commitment — has the ability to really impact Europe’s ability to attract those marginal volumes,” said Cheniere Chief Commercial Officer Anatol Feygin
• A recovery in China’s demand this year would increase global competition for LNG supplies. Despite low gas demand this winter and high end of season gas storage levels Europe will still require strong LNG supplies to restock this summer and into next winter.
• LNG prices have fallen significantly in recent months largely due to the mild northern hemisphere winter but the global market for seaborne cargoes could tighten.
• Gunvor CEO Torbjörn Tornqvist also expects competition for LNG cargoes to intensify between Asia and Europe as soon as this summer.
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