GLNG: China seeks greater global LNG trading role

China is reportedly working to establish itself as a major player in global LNG trading. The move comes around 20 years after the country made a similar push into oil trading.
Chinese firms are set to benefit from liberalisation at home and recently signed contracts with LNG suppliers overseas, notably US producers of the super-chilled fuel, according to Reuters. The news service reported this week that Chinese firms Sinopec, Sinochem Group, ENN Natural Gas and China Gas were building up trading teams from Beijing and Singapore to London.
The development coincides with China edging out Japan to become the world’s largest buyer of LNG. In 2021, Chinese imports of LNG rose by 18% to reach 79mn tonnes – a record high. Meanwhile, the resumption of trade between the US and China since the onset of the pandemic has come as a boost to both US producers and Chinese buyers, with several long-term supply agreements announced last year. Reuters cited one Beijing-based trader as saying the size of the contracts signed with US suppliers was expected to leave China with plenty of LNG to trade on the global market after domestic demand has been met.
Indeed, this appears to have started already. In January, two of China’s state-owned energy giants, China National Offshore Oil Corp. (CNOOC) and Sinopec, launched tenders for the resale some of their supply. With spot prices high and profits to be made, such moves could be set to become more frequent.