China looking for more US LNG supplies: press
A handful of Chinese energy companies are looking to US supplies of LNG to address expectations of winter shortages, sources told the Reuters news service October 15.
Firms including Sinopec and China National Offshore Oil Company have been in talks primarily with US LNG exporters Cheniere Energy and Venture Global about more supplies.
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“Companies faced a supply gap (for winter) and surging prices,” a Beijing-based industry source told the news service. “Talks really picked up since August when spot prices touched $15/mn Btu.”
Chinese natural gas prices are five times as high as they were last year, part of a growing trend in broader commodity prices.
Reuters noted that US LNG cargoes are usually more expensive than oil-linked contracts from typical suppliers to the Asian economies, Australia and Qatar. But not anymore.
"We expect more deals to be signed before year-end. It's primarily driven by the global energy crunch and prices we're seeing now,” another Beijing-based source was quoted as saying. “US supplies now stand out as attractive."
US-based exports of gas in the form of LNG are expected to accelerate as more liquefaction trains and new export facilities come online.