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China Set to Halt LNG Sales to Foreign Buyers this Winter

LNG

The Chinese National Development and Reform Commission has asked PetroChina, Sinopec and Cnooc to keep winter LNG cargoes for domestic use according to Bloomberg sources.

  • Forecasts for a small gas supply deficit have likely spurred the move by Beijing as well as lower appetite in Europe to import cargoes at sky high prices against rapidly filling inventories.
  • A move by China to secure its own LNG supply could drain shipments to Europe. China holds large contracts to purchase LNG from exporters like the US.

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