GLNG: China resells US LNG cargoes

China is reported to have resold a handful of US LNG cargoes to Europe as price trends and Russia’s war in Ukraine continue to reroute trade flows.
This also marks the continuation of a trend that emerged at the start of this year, whereby Chinese oil and gas companies are seeking to resell excess cargoes of LNG in markets where they would fetch a higher price.
Citing traders familiar with the matter, Bloomberg reported on March 15 that state-owned Sinopec, via its Unipec trading arm, had sold at least three cargoes for delivery between now and June to European buyers. The cargoes were sold through a tender that closed late last week, according to the traders.
The shipments are due to be loaded from the Calcasieu Pass terminal on the US Gulf Coast, operated by Venture Global LNG, with which Sinopec has an offtake agreement. This represents a new development in Chinese resales of LNG cargoes, as previously reported resales were shipped – or are still due to be shipped – from China.
The tender came after European gas prices surged to record highs on fears of a disruption in Russian gas flows to the continent. Prices then declined as flows remained stable, and Asian LNG price trends have tracked European gas prices.
Nonetheless, the risk of disruption remains high, and in the longer term, the European Union is committed to dramatically reducing its dependence on Russian gas, which could help drive further gas price increases.