The Strategist

China stops selling LNG abroad to accumulate reserves

10/18/2022 - 09:36

State-owned importers are no longer allowed to resell liquefied natural gas (LNG) to customers in Europe and Asia, according to Bloomberg. The nation wants to build up its gas reserves, before the winter season.

Albert Bridge
Albert Bridge
The State Development and Reform Committee of China has reportedly requested that PetroChina Co., Sinopec, and Cnooc Ltd. store winter supplies for domestic use, according to the newspaper, referring to sources

Reuters contacted the committee, as well as PetroChina, Sinopec, and Cnooc for comments, but none of them responded.

Amid declining demand that has reached its lowest level since 2002, Chinese LNG importers have decided not to participate in the spot market this winter.