China Is Aggressively Buying Up Cheap Russian LNG, Europe paying a premium for US LNG

[beijingwalker]

China Is Aggressively Buying Up Cheap Russian LNG, Europe paying a premium for US LNG​

By Irina Slav - Sep 08, 2022, 2:45 AM CDT

• Russia is selling liquified natural gas from the Sakhalin-2 project at a 50% discount and the operating company, a new state-owned entity, is still making a profit.
• In August, China's imports of Russian LNG rose to the highest level since at least 2019, with the country buying volumes that were previously going to Japan and South Korea.
• China's imports of liquified natural gas from the United States have been on the decline as Europe has been paying a premium for those shipments.

Russia is selling liquefied natural gas from the Sakhalin-2 project in the Far East to China at a 50-percent discount and still making a profit on it, Bloomberg has reported, citing unnamed traders.

“Russian supply is still making its way into the market, just with a reorganization of trade flows via market participants who don’t take issue with accepting Russian cargoes,” Saul Kavonic, an energy analyst at Credit Suisse, told Bloomberg.

The other two big buyers of Sakhalin-2 LNG, Japan, and South Korea, according to Bloomberg, stopped buying the commodity after Russia’s invasion of Ukraine. Japan, however, continues to receive Russian LNG from Sakhalin-2 under other contracts.

“It appears China is happy to take Russian LNG cargoes at discounts, swapping out alternative supply that can then be directed to Europe at higher prices.”

Despite the discount, LNG prices this year have soared so high that the operator of Sakhlin-2 is still making a profit. This operator, by the way, is a new state-owned entity that replaced the previous consortium.

The two Japanese partners in the original consortium were allowed to keep their stakes in the new entity as well. Shell abandoned its 27.5-percent stake in the project.

Bloomberg reports that data shows China’s imports of Russian liquefied natural gas rose to the highest since at least 2019 in August while shipments from the United States have been on the decline as they get diverted to Europe, which is ready to pay a premium for the supply.

Speaking of Europe, Poland this week suggested the European Union introduce a price cap on all gas imports, including LNG, as the costs of this alternative gas supply contribute to the energy price inflation cross the bloc.

For now, the European Commission, however, has only proposed a gas price cap on Russian imports following the same logic as the one employed by the G7 in imposing an oil price cap on Russian exports.

China Is Aggressively Buying Up Cheap Russian LNG | OilPrice.com

China is buying an ever-increasing amount of discounted Russian LNG, allowing the more expensive U.S. cargoes to be bought up by Europe

oilprice.com

 

[beijingwalker]

China completes roofs of world's 3 largest LNG storage tanks​

 

[Viet]

China Is Aggressively Buying Up Cheap Russian LNG, Europe paying a premium for US LNG​

By Irina Slav - Sep 08, 2022, 2:45 AM CDT

• Russia is selling liquified natural gas from the Sakhalin-2 project at a 50% discount and the operating company, a new state-owned entity, is still making a profit.
• In August, China's imports of Russian LNG rose to the highest level since at least 2019, with the country buying volumes that were previously going to Japan and South Korea.
• China's imports of liquified natural gas from the United States have been on the decline as Europe has been paying a premium for those shipments.

Russia is selling liquefied natural gas from the Sakhalin-2 project in the Far East to China at a 50-percent discount and still making a profit on it, Bloomberg has reported, citing unnamed traders.

“Russian supply is still making its way into the market, just with a reorganization of trade flows via market participants who don’t take issue with accepting Russian cargoes,” Saul Kavonic, an energy analyst at Credit Suisse, told Bloomberg.

The other two big buyers of Sakhalin-2 LNG, Japan, and South Korea, according to Bloomberg, stopped buying the commodity after Russia’s invasion of Ukraine. Japan, however, continues to receive Russian LNG from Sakhalin-2 under other contracts.

“It appears China is happy to take Russian LNG cargoes at discounts, swapping out alternative supply that can then be directed to Europe at higher prices.”

Despite the discount, LNG prices this year have soared so high that the operator of Sakhlin-2 is still making a profit. This operator, by the way, is a new state-owned entity that replaced the previous consortium.

The two Japanese partners in the original consortium were allowed to keep their stakes in the new entity as well. Shell abandoned its 27.5-percent stake in the project.

Bloomberg reports that data shows China’s imports of Russian liquefied natural gas rose to the highest since at least 2019 in August while shipments from the United States have been on the decline as they get diverted to Europe, which is ready to pay a premium for the supply.

Speaking of Europe, Poland this week suggested the European Union introduce a price cap on all gas imports, including LNG, as the costs of this alternative gas supply contribute to the energy price inflation cross the bloc.

For now, the European Commission, however, has only proposed a gas price cap on Russian imports following the same logic as the one employed by the G7 in imposing an oil price cap on Russian exports.

China Is Aggressively Buying Up Cheap Russian LNG | OilPrice.com

China is buying an ever-increasing amount of discounted Russian LNG, allowing the more expensive U.S. cargoes to be bought up by Europe

oilprice.com

50 percent discount?

Wow

Lavrov “new democratic world order” becomes cheaper under China’s thumb.

 

[MH.Yang]

50 percent discount?

Wow

Lavrov “new democratic world order” becomes cheaper under China’s thumb.

Yes, we will double the price and sell it to the USA. The USA will double the price and sell it to you.

China’s Energy Giants Sell Gas to World Scrambling for Supply

China’s biggest energy groups are diverting more liquefied natural gas away from their languishing home market, offering some relief to desperate buyers suffering supply shortages in other parts of the world.

www.bloomberg.com

Do you really think that only the Russians lost?

 

[Viet]

Yes, we will double the price and sell it to the USA. The USA will double the price and sell it to you.

China’s Energy Giants Sell Gas to World Scrambling for Supply

China’s biggest energy groups are diverting more liquefied natural gas away from their languishing home market, offering some relief to desperate buyers suffering supply shortages in other parts of the world.

www.bloomberg.com

Do you really think that only the Russians lost?

Not the reality
Look at the prices of the futures
Now $200 per MWh natural gas
Down from $300

There is no lack of gas, we have even a surplus of natural gas on international market. The problem is Lng infra. That takes time to build.

 

[MH.Yang]

Not the reality
Look at the prices of the futures
Now $200 per MWh natural gas
Down from $300

It doesn't matter, just you be happy.

At least we are happy, except that my hands are sore when I count the money.

 

[8888888888888]

EU = USA Puppets.

 

[Viet]

It doesn't matter, just you be happy.

At least we are happy, except that my hands are sore when I count the money.

That’s expected you chinese get richer while russians poorer. What will Putin do next year when Europe stops buying oil, gas, coal, gold, diamonds? Will he sell everything to China instead?
He makes Russia to slave.
By the way, German households have properties alone worth 10 trillions euro. That’s not including other assets.

 

[jhungary]

Yes, we will double the price and sell it to the USA. The USA will double the price and sell it to you.

China’s Energy Giants Sell Gas to World Scrambling for Supply

China’s biggest energy groups are diverting more liquefied natural gas away from their languishing home market, offering some relief to desperate buyers suffering supply shortages in other parts of the world.

www.bloomberg.com

Do you really think that only the Russians lost?

You do know US is THE BIGGEST Natural Gas exporter in the world after Russia stop selling to EU......right?? Why would US buy gas from China who buy them from Russia??

List of countries by natural gas exports - Wikipedia

en.wikipedia.org

That Wikipedia reference was in 2020, when Russia is ahead of US for over 50 billion m3, Considering Russian export 152 billion m3 of gas to EU in 2020.

Europe: natural gas imports from Russia by country | Statista

The volume of natural gas imported into the European Union (EU-27) from Russia increased since 2015 from 124 billion cubic meters to 154 billion cubic meters in 2021.

www.statista.com

Infact, I think you got this completely the other way around. China buy US gas and then resell them to EU

Bloomberg - Are you a robot?

 

[MH.Yang]

You do know US is THE BIGGEST Natural Gas exporter in the world after Russia stop selling to EU......right?? Why would US buy gas from China who buy them from Russia??

List of countries by natural gas exports - Wikipedia

en.wikipedia.org

That Wikipedia reference was in 2020, when Russia is ahead of US for over 50 billion m3, Considering Russian export 152 billion m3 of gas to EU in 2020.

Europe: natural gas imports from Russia by country | Statista

The volume of natural gas imported into the European Union (EU-27) from Russia increased since 2015 from 124 billion cubic meters to 154 billion cubic meters in 2021.

www.statista.com

Infact, I think you got this completely the other way around. China buy US gas and then resell them to EU

Bloomberg - Are you a robot?

China buys natural gas from the USA and resells it to the EU?

Don't you see the logic problem?

Why doesn't the EU buy natural gas directly from the USA? Is China closer to the EU than the USA?

 

[jhungary]

China buys natural gas from the USA and resells it to the EU?

Don't you see the logic problem?

Why doesn't the EU buy natural gas directly from the USA?

First of all, closest oil and gas field to EU is not US, it's either North Sea (which is north of Europe) or Middle East (South of the Med), both are far closer to US and both produces large amount of oil and gas in those area.

Second of all, you can't buy gas unless you have pipeline set up, there are no cross Atlantic pipeline set up between US and EU, YET, putting it on a gas container and ship it to EU would be a lot more expensive than getting them directly from the pipe in Russia.

Thirdly, China used to buy a lot of Gas Product from US, mostly processed petroleum gas. US is 5th largest exporter of gas product to China

Petroleum Gas in China | The Observatory of Economic Complexity

Find the latest exports, imports and tariffs for Petroleum Gas trade in China.

oec.world

 

[MH.Yang]

First of all, closest oil and gas field to EU is not US, it's either North Sea (which is north of Europe) or Middle East (South of the Med), both are far closer to US and both produces large amount of oil and gas in those area.

Second of all, you can't buy gas unless you have pipeline set up, there are no cross Atlantic pipeline set up between US and EU, YET, putting it on a gas container and ship it to EU would be a lot more expensive than getting them directly from the pipe in Russia.

Thirdly, China used to buy a lot of Gas Product from US, mostly processed petroleum gas. US is 5th largest exporter of gas product to China

Petroleum Gas in China | The Observatory of Economic Complexity

Find the latest exports, imports and tariffs for Petroleum Gas trade in China.

oec.world

Let me translate your reply:

In order to meet Trump's conditions for reducing the trade deficit during the trade war, China purchased a large amount of American oil and gas futures.
So much so that when the EU needs American oil and natural gas, they can only buy it from the Chinese at a high price.

Is my explanation correct?



Finally, let us Chinese, you Americans, and them Europeans say thank you to trump.

 

[MajesticPug]

Not the reality
Look at the prices of the futures
Now $200 per MWh natural gas
Down from $300

There is no lack of gas, we have even a surplus of natural gas on international market. The problem is Lng infra. That takes time to build.

Europeans look stupid and are stupid. LOL... just because most EU leaders got their dirty secrets in NSA's hands. What kind of sins did Scholtz commit? LOL...

 

[jhungary]

Let me translate your reply:

In order to meet Trump's conditions for reducing the trade deficit during the trade war, China purchased a large amount of American oil and gas futures.
So much so that when the EU needs American oil and natural gas, they can only buy it from the Chinese at a high price.

Is my explanation correct?

No.

What you don't understand is this. China don't have pipeline from the US, which mean WHATEVER China buy from the US would need to transport by ship. Be it oil, LNG, LPG or whatever. EU also do not have trans-Atlantic pipeline with the US, which mean, again, if EU want to buy any oil or gas product from the US, they will need to be transported, again, by ship, be it Oil, LPG or LNG.

Problem is, US have all the shipping depot in the West Coast, because EU never brought oil and gas from the US, why would they need to be when they have Russia, North Sea and Middle East all closer to them than to the US. All the gas from US ship from West Coast, from San Diego to Anchorage. And travel the 6000 km to China, that's how you bought oil and gas from us.

Now Europea is NOT on US West Coast, and when China receives those shipment already on a ship, basically ready to go, that would be cheaper for EU to buy from the same ship from China, you probably didn't need to unload those oil and gas product from those ship, rather than buying them from the US, because it either have to come from the wrong side of the US or they will have to build terminal and pipeline in the East Coast to ship gas to Europe.

US is building gas pipeline to the UK thru Greenland ad Canada, which would facilitate the cheaper gas transfer to EU, but until then, oil and gas from US will be coming from the wrong side of US coast. It will be more expensive to ship it from Anchorage or California to EU than buy second hand from China.

 

[MH.Yang]

No.

What you don't understand is this. China don't have pipeline from the US, which mean WHATEVER China buy from the US would need to transport by ship. Be it oil, LNG, LPG or whatever. EU also do not have trans-Atlantic pipeline with the US, which mean, again, if EU want to buy any oil or gas product from the US, they will need to be transported, again, by ship, be it Oil, LPG or LNG.

Problem is, US have all the shipping depot in the West Coast, because EU never brought oil and gas from the US, why would they need to be when they have Russia, North Sea and Middle East all closer to them than to the US. All the gas from US ship from West Coast, from San Diego to Anchorage. And travel the 6000 km to China, that's how you bought oil and gas from us.

Now Europea is NOT on US West Coast, and when China receives those shipment already on a ship, basically ready to go, that would be cheaper for EU to buy from the same ship from China, you probably didn't need to unload those oil and gas product from those ship, rather than buying them from the US, because it either have to come from the wrong side of the US or they will have to build terminal and pipeline in the East Coast to ship gas to Europe.

US is building gas pipeline to the UK thru Greenland ad Canada, which would facilitate the cheaper gas transfer to EU, but until then, oil and gas from US will be coming from the wrong side of US coast. It will be more expensive to ship it from Anchorage or California to EU than buy second hand from China.

just a minute, plz

do u believe what u say?
do u think people dt know about the panama canal?
do u think that only china has tankers, but europe does not?