China could re-sell LNG to Europe

Importers of liquefied natural gas (LNG) in China are now looking to re-sell at least five major shipments, according to Bloomberg. First in line will likely be buyers nearby in Japan and South Korea, also major users of LNG. But falling demand for LNG in China is also good news for Europe, which is desperate for alternatives to Russian gas. Lower prices could offset the cost of shipping LNG from Asia to Europe, and more LNG from the US could become available on the market.

LNG is a keystone of Europe’s plan to reduce its reliance on energy from Russia. Before the war, there were no new LNG import terminals planned on the continent, according to the intelligence firm Rystad Energy; now, there are at least twelve.

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