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China is buying natural gas like there’s still an energy crisis
CHINA is on a natural gas shopping spree, and officials are happy for importers to keep striking deals even after a global energy crisis has eased.
The government continues to back efforts by state-owned buyers to sign long-term contracts and even invest in export facilities, in order to bolster energy security through the middle of the century, according to people who have had meetings with policymakers.
The nation is on track to be the world’s top importer of liquefied natural gas (LNG) in 2023. And for the third straight year, Chinese companies are agreeing to buy more of it on a long-term basis than any single nation, according to data compiled by Bloomberg News.
China is looking well into the future to avoid a repeat of energy shortages, while also seeking to fuel economic growth. Long-term LNG contracts are attractive because shipments are promised at a relatively steady price compared to the spot market, where gas surged to an all-time high after Russia’s invasion of Ukraine.
“Energy security has always been a priority for China,” said Toby Copson, global head of trading and advisory at Trident LNG in Shanghai. “Having ample supply in their portfolio allows them to manage future volatility. I would expect to see more.”
The dealmaking efforts will help underpin global export projects, strengthening the role the seaborne fuel will play in the energy mix. And as suppliers move to woo Chinese importers, Beijing’s influence in the market is set to increase.
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