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The Star
23-05-2025
- Business
- The Star
China's LNG traders emerge as worldwide swing suppliers
PetroChina Co, the country's top gas supplier, is looking for upstream stakes in liquefied natural gas export projects. — Bloomberg BEIJING: Chinese gas firms are taking advantage of diverse supply sources and a flexible power generation system to lean into the role of global swing suppliers. PetroChina Co, the country's top gas supplier, is looking for upstream stakes in liquefied natural gas (LNG) export projects or flexible purchase agreements to help turn from a buyer in overseas markets into a bigger trader, said Wang Haiyan, deputy general manager at the firm's trading arm. The company is looking to build its LNG portfolio to 35 million tonnes by 2030, a jump of 75% from now, he said during a recent panel discussion at the World Gas Conference in Beijing. For China, it's a kind of role reversal. Asia used to be the main source of demand and price-setting, while European nations acted as a sink, sopping up shipments in the event of a glut. That changed after Russian pipeline gas flows to the continent were drastically cut following its invasion of Ukraine. 'The balancing role that used to be played by the European market has become China's role,' said Zhu Yanyan, general manager for the trading and commodities center at a unit of Cnooc Ltd, the country's largest LNG importer. 'The reason is quite simple – because China is well supplied with multiple resources.' For example, Zhu said, China reduced LNG imports by about 20% in the first quarter as it redirected cargoes to Europe, where gas prices were soaring. China made up about 75% of that gap with increased domestic production and pipeline imports, Zhu said. The Asian nation has also boosted clean energy generation after installing a record number of wind turbines and solar panels, giving its gas power plants more flexibility to reduce electricity generation, Zhu said. Other major gas demand sectors, such as factories, transport and home-heating, are less flexible. Part of the shift for China is also the pursuit of profits. Sometimes it doesn't make economic sense to bring LNG shipments into the domestic market when they can be resold for higher prices overseas. China's gas imports have fallen in 2025, a decline centred on seaborne shipments of LNG that slumped 22% through April from the previous year. Demand for LNG – the fuel carried in super-chilled tankers – is headed for its first annual drop since the height of the pandemic, just as new export projects are slated to come online, led by the shale gas fields of the United States. — Bloomberg
Yahoo
28-03-2025
- Business
- Yahoo
Cnooc Profit Rises on Increased Oil and Gas Drilling Output
(Bloomberg) -- Cnooc Ltd. posted higher annual earnings and boosted its dividend, as growth in energy output offset weaker prices. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes Net income rose to 137.9 billion yuan ($19 billion) in 2024, from 123.9 billion yuan the previous year, China's largest offshore oil-and-gas driller said in a filing. While that missed expectations of 144.6 billion yuan, and was shy of the record profit in 2022, the full-year dividend rose 12% to HK$1.40 (18 cents). Output expanded to 726.8 million barrels of oil equivalent, from 678 million barrels a year earlier, with overseas growth led by supplies from Guyana. The state-owned company has led Beijing's efforts to enhance energy security and its operations have now delivered a sixth year of record production. Cnooc's focus on extraction leaves its earnings heavily dependent on global oil prices, which averaged about 3% less in 2024 on-year. But it also means the company is relatively unaffected by headwinds to demand faced by downstream peers. Earlier this week, China's biggest top, Sinopec, reported a tumble in profits as the electric-vehicle boom weighs on fuel consumption. At this point, the company will stick to its three-year output targets through to 2027, including a push to increase gas production, Vice Chairman Zhou Xinhuai said at a briefing. Among its overseas interests, Cnooc and Exxon Mobil Corp. have merged their arbitration claims against Chevron Corp.'s proposed takeover of Hess Corp., a deal that would allow the US oil supermajor to enter Guyana's Stabroek Block. A first tribunal hearing is due in May. PetroChina Co. — the country's largest oil and gas company, whose operations straddle drilling, refining and retail — reports earnings on Sunday. China's energy giants are increasingly looking to natural gas to drive growth, although domestic prices have stumbled recently due a slowing economy and plethora of supply options, from domestic fields and gas piped overland from Russia and central Asia, to pricier seaborne imports of liquefied natural gas. Another focus is investing in petrochemicals to offset weakness in transport fuels. In that vein, Cnooc is bolstering downstream operations, with a $2.7 billion expansion of its Daxie refinery that's expected to start up in June. (Updates to add dividend details in first, second paragraphs.) Business Schools Are Back Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? Israel Aims to Be the World's Arms Dealer ©2025 Bloomberg L.P. Sign in to access your portfolio
