WSJ: China benefits when Russia is subject to penalties

2022-10-09 05:02:55

(MENAFN) The Wall Street Journal revealed this week that China is reselling United States liquefied natural gas (LNG) to energy-strapped European governments for enormous profits due to decreased local demand. Moreover, China used to be the biggest LNG importer, but it is now a significant LNG exporter.

China has started reselling excess LNG into the international market as domestic energy demand has decreased recently, with Europe, Japan, and South Korea among the top customers.

Chinese energy businesses are profiting "hundreds of millions of dollars per cargo" by exporting United States LNG to Europe under long-term contracts that allow for low-cost purchases.

The publication has noted that between January and August of the current year, there were 19 LNG boats from the United States stationed in China, down from 133 during the same time period previous year.

Beijing has been selling Russian gas at a big discount in addition to American gas, the site reported, quoting shipping statistics. China has purchased over 30 percent more gas from Russia this year than it did last. August saw the biggest increase in China's LNG imports from Russia in at least two years.

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