Nothing personal just business: how China sold American LNG

Nothing personal  just business: how China sold American LNG The economic downturn in the region, trade embargoes and Europe's pursuit of energy resources provide an excellent opportunity to speculate on the problems of the global market. In a situation of high prices, China helps Europe and resells its LNG reserves to it.The decline in domestic demand leads to the fact that China constantly has several million tons of LNG that it can sell on the world market. Long-term contracts for American LNG allow you to change the final destination, but prices are still formed by the American Henry Hub standard - this is much more profitable than spot prices on Asian markets. Thus, since the beginning of this year, China has exported to Europe and Asia about 250,000 metric tons of LNG worth $449 mln.Moreover, this year China has already received almost 30% more gas from Russia at a price well below the market price. Russia turned to Beijing for economic support after the start of the military conflict in Ukraine, but more often than not, business interests are more important than politics.Companies with long-term contracts sell surplus and earn hundreds of millions of dollars. Among the buyers are Europe, Japan and South Korea. Of course, Chinese sales to Europe are insignificant, but they still reduce the risk of political conflicts due to the reduction in Russian gas exports.For example, instead of sending the tanker Diamond Gas Victoria, owned by ENN Natural Gas Co, to the east coast of China, the vessel is planned to bring LNG to Europe. From this supply alone, ENN expects to make a profit for $110-130 mln. In July, several deals that Cheniere signed with ENN and Sinochem International Corp became topical. (approximately 0.9 million metric tons of LNG per year), and almost all of this cargo was resold.So the ability to use absolutely all market factors makes your business much more reliable.Profits to yall!