Latest news with #WeiXiong
Canada News.Net
13 hours ago
- Business
- Canada News.Net
China warming to new Russian mega gas pipeline WSJ
The Israel-Iran conflict has renewed Beijings interest in Power of Siberia 2, according to the outlet China's interest in the construction of Russia's proposed Power of Siberia 2 pipeline, which would deliver gas via Mongolia, has intensified following the outbreak of the conflict between Iran and Israel, the Wall Street Journal reported on Tuesday, citing sources in Beijing. The planned mega pipeline would allow up to 50 billion cubic meters (bcm) of natural gas to be delivered annually from northern Russia to China via Mongolia. The report said that the recent Iran-Israel conflict has raised concerns within the Chinese government about the reliability of oil and gas supplies from the Middle East, prompting policymakers to explore alternative energy sources. China imports about 30% of its gas as LNG from Qatar and the UAE through the Strait of Hormuz - a route for about 20% of the world's oil - which Iran has threatened to close in response to the US strikes. Chinese "teapot" refineries have also grown reliant on discounted Iranian crude, with analysts estimating that over 90% of Tehran's oil exports now go to China - despite US sanctions aimed at curbing the country's oil sales abroad. "The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz," Wei Xiong, head of China gas research at Rystad told the outlet. A blockade of the chokepoint could trigger a major shift in Beijing's LNG supply, with the country "moving from being over-contracted to supply deficit." Even with a ceasefire, the recent conflict has prompted Beijing to seek alternative energy sources, according to analysts and officials. China is also looking to increase oil imports from Russia, which already supplies about a fifth of its crude to its neighbor. Moscow, in turn, is pursuing the project as it seeks to diversify its energy export markets amid Western sanctions and reduced European demand. The Power of Siberia 2 pipeline is seen in Beijing as a strategic move to further diversify supplies and strengthen energy security in the face of rising geopolitical uncertainty, the report says. "The volatility and unpredictability of the military situation have shown the Chinese leadership that a stable land-based pipeline supply has geopolitical benefits," the outlet cited Aleksander Gabuev, the director of the Carnegie Russia Eurasia Center and an expert on China-Russia relations, as saying. "Russia could benefit from that." China is seeking closer ties with Russia as the White House signals efforts to drive a wedge between the two nations, according to sources familiar with Beijing's policymaking. Economic cooperation has continued to grow despite sweeping Western sanctions, with bilateral trade reaching a record $245 billion in 2024.
Yahoo
03-03-2025
- Business
- Yahoo
China's LNG imports hit five-year low due to weak demand
China's liquefied natural gas (LNG) imports have dropped to their lowest level since the onset of Covid-19 in early 2020. The decline is attributed to weak demand and higher prices in Europe, which have redirected cargoes away from China, reported Bloomberg. According to Kpler data, China imported 4.5 million tonnes (mt) of LNG last month, trailing Japan as the largest importer for the second consecutive month. Asia's largest economy has seen a decrease in LNG imports, reminiscent of the early 2020 period when Covid-19 shut down many factories and curbed demand. Wei Xiong, head of China gas research at Rystad Energy, noted that the relatively warm winter, ample storage supplies and low industrial demand have contributed to the decline. Xiong highlighted that the full inventories are expected to continue impacting imports until the end of the heating season. In recent months, some Chinese gas companies have taken advantage of more attractive prices abroad by reselling spot cargoes, particularly to Europe. The Binhai LNG terminal in Jiangsu province re-exported a shipment last month to South Korea's Boryeong facility, as per ship-tracking data compiled by Bloomberg. The terminal also re-exported cargoes in January and December. Xiong anticipates that reselling activity will remain high in 2025 following China's imposition of a 15% tariff on US LNG. Conversely, China's crude oil imports from Russia increased by 1% in 2024, setting a new record compared with 2023. The rise in imports reflects China's preference for discounted Russian supplies amid weakened refining margins. Data from China's General Administration of Customs shows that imports from Russia, including pipeline and seaborne deliveries, amounted to 108.5mt, equivalent to 2.17 million barrels per day. The shift towards Russian oil is attributed to its lower prices and a Chinese Government mandate to bolster stockpiles. "China's LNG imports hit five-year low due to weak demand" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
03-03-2025
- Business
- Yahoo
China LNG Imports Fall to Lowest Since Covid Hit Demand in 2020
(Bloomberg) -- China's liquefied natural import gas imports fell to a five-year low last month on weak demand and higher European prices luring cargoes there. Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays Inward shipments were at 4.5 million tons for the month, according to Kpler data, resulting in China coming in behind Japan as the biggest importer for the second month in a row. Asia's largest economy took the least LNG since early 2020 when Covid-19 shut down many factories and curbed demand, forcing Chinese buyers to declare force majeure. It's been a relatively warm winter in China, and there are ample supplies in storage and industrial demand is fairly low, said Wei Xiong, head of China gas research at Rystad Energy. The brimming inventories are likely to continue to weigh on imports through the end of the heating season, she said. Some Chinese gas firms have been reselling spot cargoes over the past few months to take advantage of more attractive prices abroad, particularly in Europe. Reselling activity is expected to remain high in 2025, following the imposition of the 15% tariff by China on US LNG, Xiong said. --With assistance from Will Wade. Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Trump's SALT Tax Promise Hinges on an Obscure Loophole Walmart Wants to Be Something for Everyone in a Divided America Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience OXO Fought Back Against the Black Spatula Panic. People Defected Anyway ©2025 Bloomberg L.P.
