Japanese utilities are stepping in to help ease China’s fuel crisis, selling excess liquefied natural gas at sky-high prices as Beijing orders its top energy companies to secure supplies at all costs.
Vessels typically chartered by Japanese companies including Jera Co., Tokyo Gas Co. and Kyushu Electric Power Co. delivered as many as six spot cargoes to Chinese ports in September, said BloombergNEF analyst Lujia Cao. State-owned Chinese firms are among the buyers that have negotiated purchases, including Sinopec, which called a tender for November to March supplies earlier last week.
China is facing a shortage of everything from natural gas to coal, as supplies have struggled to keep up with a rebound in economic activity. That’s providing lucrative profits for the Japanese companies amid a scorching price rally. North Asia’s LNG spot benchmark has surged to a record high $34.47 per million British thermal units amid intensifying global competition between China and Europe for the superchilled fuel.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.