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China would resell Russian gas to Europeans

  • Post category:Economy News
  • Reading time:4 mins read

According to information from the Financial Times, relayed by RTBF, China would resell its surplus liquefied natural gas (LNG) to Europe, and this with significant profit margins. However, a good part of this LNG would come… from Russia.


Writing


Last update:
08-09-22, 12:05


Source:
RTBF, Financial Times, Global Times, Oil.com

Since the beginning of the war in Ukraine and, consequently, of the diplomatic crisis with Moscow, the European Union has been trying to fill its gas reserves for the winter. This mission is on track since more than 80% of stocks are already guaranteed. Russia’s share of these gas imports has fallen from 40% to 9% in six months, according to the Commission.

Two to three times more expensive

China, which has too much gas at the moment due to the shutdown of many companies and repeated confinements, and which can benefit from attractive tariffs from the Russian supplier thanks to the fall in demand, resells its surpluses to Europe, via the markets, two to three times more expensive than its purchase price.

China exploits the vein

The Chinese daily Global Times confirms this constantly rising demand for gas from Europeans and the existence of this resale mechanism while cultivating vagueness about the origin of this gas. The specialized site oil.com does not hesitate, on the other hand, to accuse China of “quietly” reselling Russian gas to Europe and profitably exploiting the situation as a privileged intermediary.

For how long?

A situation which, on the other hand, should last “only” the time necessary for the normal resumption of Chinese economic activity and, on the European side, the time to find more sustainable alternatives.

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