07/17 Closing Prices / revised 07/18/2024 07:33 GMT |                                   07/17 OPEC Basket   $84.56   +$0.12 cents 07/17 Mexico Basket (MME)  $76.44   +$1.47 cents  | 06/31 Venezuela Basket (Merey)   $69 23   -$1.22 cents| 07/17 NYMEX WTI  August CLQ24  $82.85 +$2.09 cents | 07/17 ICE Brent Sept  BRNU24  $85.08 +$1.35 cents  | 07/17 NYMEX Gasoline Aug RBQ24  $2.50 + 1 %  |  07/17 NYMEX  Heating Oil  Aug  RBQ 24 $2.49  +1% | 07/17 Natural Gas August NGQ 24    $2.04   -7%  | 07/12 Active U.S. Rig Count (Oil & Gas)    584  -1  | 07/18 USD/MXN Mexican Peso   17.7334 (data live)  | 07/18 EUR/USD   1.0929 (data live)  | 07/18 US/Bs. (Bolivar)   $36.5407000 (data BCV) |

China’s Gas Buying Spree Is About More Than Just Energy Security – Bloomberg

  • A flood of LNG supply deals is giving the world’s No. 2 economy more influence in the fastest-growing fossil fuel market.
Tugboats push an LNG vessel from Peru to a terminal in China’s Jiangsu province. (Xu Congjun/Barcroft Media)

Stephen Stapczynski, Bloomberg News

Energiesnet.com 07 14 2023

Energy security” has become a trendy phrase to explain many countries’ plans for building up fuel supplies. And it’s certainly a big reason behind China’s spending spree to procure natural gas for well into the future.

But there’s more to the nation’s strategy: The unrelenting pace of supply deals is bolstering the influence of the world’s second-largest economy in the fastest-growing fossil fuel market.

For the third straight year, Chinese companies are agreeing to buy more liquefied natural gas on a long-term basis than any single nation. Importers are consistently signing some of the industry’s longest and largest contracts, and the government is happy if they ink more.

These deals lock in LNG through the middle of the century to help avoid energy shortages — like the ones the country faced in recent years due to coal and hydropower supply crunches. At the same time, the push expands China’s control over global gas supply.

Source: Rystad
Source: Rystad

You could see that second point in full swing last year. The country’s LNG buyers turned into suppliers, playing a key role in balancing the market by reselling spot shipments to European importers rushing to replace pipeline gas from Russia.

China began its drive for long-term contracts in 2021 after relations with the US improved. While imports dipped last year partly due to weaker demand amid Covid restrictions, Chinese buyers renewed the effort after Russia’s invasion of Ukraine cut pipeline gas to Europe.

This is China’s go-to strategy when it comes to energy and commodities. From copper to rare earths, it tries to expand influence over the stuff that’s vital to both the nation’s economy and the world’s. The country is on track to be the top importer of LNG in 2023, with demand set to roughly double over the next decade.

The LNG drive gives the nation a seat at the table for the global seaborne trade of gas, even though it’s not an exporter. Plus, suppliers are eager to court Chinese buyers since no other importer will promise to buy gas for nearly 30 years.

The upshot: China can provide stability during periods of global shortages, but it could withhold supply and drive up prices if needs at home must be met. Either way, the nation will be shaping the future of the industry for decades to come.

–Stephen Stapczynski, Senior Energy Reporter

Source: The Silver Institute, World Silver Survey 2023
Figures for 2023 are a forecast.
Source: The Silver Institute, World Silver Survey 2023
Figures for 2023 are a forecast.

China is installing panels at a breakneck pacehttps://www.bloomberg.com/toaster/v2/charts/8414e80c91728355b22e7e34a93e73d8.html?brand=markets&webTheme=markets&web=true&hideTitles=true

Changes to solar-panel technology are accelerating demand for silver, a phenomenon that’s widening a supply deficit for a metal with little additional mine production on the horizon. Solar’s part of overall silver demand is forecast to make up 14% of consumption this year, compared with about 5% in 2014.

bloomberg.com 07 10 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com

CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

Scroll to Top