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China wants to sell a small part of its gas stocks as prices have soared in recent months in Europe and the winter appears to be relatively mild in the country. The Middle Kingdom is one of the biggest buyers of liquefied natural gas in the world. The Chinese initiative might lower prices in Europe.
The companies Cnooc and Sinopec will thus put on sale over the next few months the equivalent of 4% of the total gas imported last year by China. The Asian giant had filled up on gas for a winter that turned out to be milder than expected. By reselling gas, Cnooc and Sinopec can also take advantage of rising prices.
Some analysts also see it as a sign that the demand for gas risks being weighed down in China by the authorities’ strict policy in the face of the coronavirus. China’s zero Covid strategy involves very tough measures like quarantining cities with millions of people.
The price of gas on the Dutch market, which sets the trend in Europe, is currently 74 euros per MWh whereas it had reached a peak of nearly 174 euros in December.
