Chinese gas buyers are reportedly looking for ways to unload imported LNG in the face of sluggish domestic demand and swelling inventories, Reuters reported on December 10.
Some five to seven LNG cargoes are set to be offered up within the next month, a source inside a state-owned firm told the news agency. He did not name any likely sellers, but Reuters quoted other sources as saying that government-run China National Offshore Oil Corp. (CNOOC) had been the most active on this front.
Those sources went on to say that importers were pursuing the resale option because some areas of the country are now oversupplied with gas. Chinese consumers currently need less fuel than usual because of unseasonably warm weather and are not putting large volumes of gas into storage because their stocks are already full or nearly full, they said.
“It’s quite warm in China and the demand is very bad,” said the source inside a state-controlled company.