China is reselling natural gas to Europe as an economic slowdown leaves it with a surplus, Nikkei reported.
China's economic slowdown has left it with a surplus of natural gas that it is re-selling to energy-strapped Europe, according to a report.
Boosted by cargoes from China, Europe's imports of liquefied natural gas jumped 60% year-on-year in the first half of 2022, according to a Nikkei report citing data from research firm Kpler.
More than 4 million tonnes of Chinese LNG has probably been resold — or roughly 7% of Europe's imports in the first half of the year — according to Nikkei.
On top of the economic slowdown, an increase in coal-powered domestic energy supply has lowered the demand for natural gas in China, the report said.
Europe is racing to fill its natural gas storage facilities ahead of what could be an extremely tough winter. It has also been importing LNG from the US, where the fossil fuel is more readily available. That has provided some traders and energy companies with huge profits.
