China Seeks Long-term Lng Supply

Some Chinese energy giants have strengthened discussions with US liquefied natural gas exporters (LNG) to ensure long-term supply agreements due to record spot prices in Asia, Demand increase and lack of electricity, Reuters lead sources in the industry. China and many other energy importers in Asia are competing for gas and coal supplies before winter in the context of the energy crisis Global. The bridge is higher than the pandemic and responds to the restricted supply, which has caused China's future coal price and Asia's immediate spot price to a record high in recent days. The threat of electricity shortages, China is currently seeking to ensure long-term LNG supplies from the US, despite tense bilateral relations and trade stress. Long-term transactions will also protect buyers from the surge of spot prices, which the market is witnessing these days

. According to Reuters's sources, at least 5 large energy companies of China, including Including China National Petroleum Company (CNOOC) and Sinopec, are promoting advanced discussions on long-term LNG providers with US suppliers including Cheniere Energy and Venture Global. The negotiations between the China and the US company have become more stressed since Asia's spot prices hit 15 USD / Million British thermal units (MMBTU) in August, setting a record at the time of the year. The spot prices have doubled since then when Asian buyers flock to hoarding gas before the heating season
Front, Asian LNG price has surpassed the psychological threshold of 50 USD / MMBTU. Price 56,326 USD / MMBTU of Platts Japan Korea Marker (JKM) for November is the highest level of all time in which LNG goods are traded on the Asian market. This is the average delivery price November delivery in Northeast Asia is about 38.50 USD / MMBTU, sources in the industry told Reuters last weekend. Average price in the week is higher than USD 1.50 / MMBTU compared to last week, in the context of stable demand from China. Binh An

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