From OilPrice, October 15:
Several Chinese energy giants have intensified discussions with U.S. liquefied natural gas (LNG) exporters to secure long-term supply deals in light of record spot prices in Asia, rising demand, and the specter of power shortages, Reuters reported on Friday, quoting industry sources.
China and many other energy importers in Asia are scrambling to procure gas and coal supplies ahead of the winter amid a global energy crunch. The higher demand after the pandemic and the muted supply response have sent China’s coal futures and Asia’s LNG spot prices to record highs in recent days.
Threatened with power outages, China is now looking to secure long-term U.S. LNG supplies, despite the tense bilateral relations and the trade spat.
Long-term deals would also protect buyers from spikes in spot LNG prices, which the market is seeing these days.
According to Reuters’ sources, at least five major Chinese energy firms, including China National Offshore Oil Company (CNOOC) and Sinopec, are in advanced discussions for long-term LNG deliveries with American suppliers including Cheniere Energy and Venture Global.
The talks between the Chinese and U.S. firms have intensified since the spot Asian LNG price hit $15 per million British thermal units (mmBtu) in August, setting a record for that time of the year....
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