Bloomberg reported that China has instructed its state-owned gas importers to halt reselling liquefied natural gas (LNG) to international customers; as the government works to ensure the country’s own supply for the next winter heating season.
According to sources with knowledge of the situation, PetroChina, Sinopec, and CNOOC have been asked by the National Development and Reform Commission to keep their winter supplies for domestic use.
China’s recent decline in domestic energy consumption prompted Beijing to resell extra LNG on the international market. Key markets for its products included Europe, Japan, and South Korea.
However, Beijing’s decision, which has committed to keep homes warm this winter; this was probably motivated by current estimates for a slight shortage in the gas supply.