China urges gas importers to secure supplies at any cost to avoid energy crunch this winter

Thursday, 7 October 2021Newsdesk

With the world grappling with an energy crisis amid the post-pandemic recovery, China has urged its liquefied natural gas (LNG) importers to secure enough fuel before winter, Bloomberg reports, citing its sources.

New Delhi, 07 October 2021

As per news report of Rt.com, According to traders with knowledge of the matter, it is difficult for the nation’s smaller gas distributors to meet the request because the government isn’t providing enough subsidies for purchases. The large state-owned companies are ready to pay high spot prices to attract shipments away from rivals in Asia and Europe despite the extreme losses they could be facing. To compare, a single LNG spot cargo that cost about $17 million last year is currently priced at more than $130 million. Traders also say some LNG importers have struggled to secure additional loans from banks to make purchases. According to them, at least two second-tier companies, including Shenzhen Energy Group, have decided against purchasing shipments despite government orders.

Source - rt.com