Connect with us


China’s Liquefied Natural Gas Companies Increase LNG Sales to Europe



liquefied natural gas companies

China’s state-owned Liquefied Natural Gas companies are making good money on liquefied gas surpluses, selling them to Europeans who are willing to pay anything for gas.

It makes sense: gas prices are going up, so Chinese energy companies are increasing their LNG sales to European buyers. It may seem that Moscow and Beijing have agreed on joint actions: Russia reduces gas supplies to the European market, which have become unpromising because of the Europeans’ desire to reject Russian gas, and thus raises the price of the “blue” fuel, and China takes advantage of the high prices to sell Europe the excess LNG that was formed because of the economic slowdown due to the outbreak of the pandemic and the energy crisis, and makes good money on it. Last year China became the main LNG importer on the planet, and this year demand from Beijing has already dropped by 20%.

Today, Europe has no alternative to liquefied natural gas. The scheme looks logical, but nevertheless it is erroneous, because Moscow and Beijing still act independently of each other in this matter and behave pragmatically.

According to Bloomberg, major Chinese energy state companies have been stepping up LNG sales to European buyers in recent weeks. The number of cargoes of American LNG for China, which Chinese companies resell to Europeans, is growing. Of course, it’s not just about American LNG. Now, for example, Chinese energy giant CNOOC has put up for sale a cargo of Australian oil from the Northwest Shelf field, due to arrive in November. There is no doubt that there will be plenty of buyers and they will all be from Europe, which has finally achieved its goal and is now virtually left without Russian gas.

Sinopec and PetroChina Co. also sell gas to Europeans. In the first eight months of this year, Chinese companies, according to the Financial Times, have already sold almost 4 million tons of liquefied gas, which amounted in the first half of the year to about 7% of Chinese consumption of “blue” fuel.

China has sharply increased its gas purchases from Russia this year. Over the last six months, the cost of importing Russian gas has increased by $15 billion: from $20 billion in March-August 2021 to $35 billion this year.

Thanks to growing supplies and LNG from Russia, the Celestial Empire has a surplus of it, which the Chinese do not need and can sell because of the slowdown in economic recovery. 

We previously reported on the US economic slowdown in 2022.


EU plans to agree on new sanctions on Russia before next week’s summit



new sanctions on russia

The European Union expects to find agreement on a package of new sanctions on Russia, or at least on its main parts, before the bloc’s summit next week, Reuters reported.

“We expect an agreement on new economic sanctions on Russia or at least on its main parts before next week’s EU summit,” a European official said.

According to the agency’s interlocutor, EU leaders are going to discuss different ideas on the energy price ceiling. He stressed that the upcoming meeting should be tense, as “difficult times” are coming.

Earlier it was reported that new EU proposals on economic sanctions against Russia will affect diamond miner Alrosa and some other Russian companies.

The EU Commission and Foreign Affairs Service put forward the ideas on September 27th against the background of the referendums.

Earlier, we reported that the Fed had lost its credibility.

Continue Reading


Market decline triggers a wave of foreign currency intervention in Asian countries



foreign currency intervention

After the start of the fight against inflation in the U.S. six months ago, when the Federal Reserve began raising the cost of borrowing, authorities in many Asian countries were also forced to carry out foreign currency intervention and increase their efforts to prevent their own currencies from falling, Bloomberg wrote.

One of the first such countries in Asia was South Korea, whose central bank spent currency intervention, saying it will buy sovereign debt of up to $2.1 billion.

Taiwan officials also took their own measures, introducing a countervailing currency intervention and declaring their readiness to ban short sales of stocks. China instructed a lot of funds to refrain from large sales of shares, and banks – to make sure the “observance” of the daily yuan rate in the market. Thus, the Japanese yen remains close to 145 per $1, and the yuan has reached its lowest level since 2008.

The rapid growth of the dollar to the detriment of all other assets is particularly acute in the Asian market. Central banks in Indonesia, Japan and India have also undertaken countervailing currency interventions to support their currencies, but their efforts seem insufficient.

“Foreign currency intervention will only help slow the decline in Asian assets, not stop it,” said Mitul Kotecha, head of emerging markets strategy at TD Securities in Singapore. – U.S. rate hikes, a stronger dollar and relatively low real rates in the region suggest the pressure will continue in the coming weeks.”

Some exception to the rule was South Korea, where the authorities’ intervention was relatively more successful as 3-year bonds rose after the central bank said it would buy government debt.

Earlier, we reported that the number of detected COVID-19 cases in the world exceeded 616.6 million.

Continue Reading


The Fed has lost its credibility. What is the Fed doing right now? 



what is the fed doing right now

According to Mohamed El-Erian, the sell-off in the stock market after the Fed’s recent interest rate hike indicates a loss of confidence in the Fed, which increases the risk of economic problems as Fed policy tightening continues, writes Business Insider. What is the Fed doing right now?

The economist now expects that the Fed’s policies will cause additional collateral damage in an attempt to meet its inflation target.

What is the Fed doing with interest rates?

El-Erian voiced his views Wednesday, warning that the Fed’s failure to raise inflation to the target this year would signal a loss of market confidence and a growing market belief that a U.S. recession could not be avoided at the price of “little blood.

The Fed chief warned that fighting rising prices would “bring some pain” to Americans by slowing down hiring and making mortgages and credit cards more expensive. After his press conference, the S&P 500 stock index fell 3.8 percent over the past 7 days.

The Fed was late in raising interest rates in an attempt to tame skyrocketing prices, El-Erian believes, for it initially fueled the 2021 bubble by keeping rates low even as inflation began to rise steadily.

Earlier we reported that the U.S. president’s administration is concerned about the tax cuts in the U.K.

Continue Reading


©2021-2022 Letizo All Rights Reserved