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Woodside Energy was expressing confidence that the price of liquified natural gas would remain high for the rest of 2022, while reports emerged on Friday of a slide in China’s imports of LNG in May.Reuters said that a combination of high prices and weak manufacturing due to COVID-19 lockdowns had crimped demand for gas while China’s coal-fired power stations maintained high levels of stocks, unlike last year when electricity rationing was starting out in some parts of the country. Reuters reported that gas use has fallen further in May as a COVID resurgence caused extended lockdowns across several manufacturing hubs, signalling a slide in future demand that has already shown itself in weak orders for July.Even for shipments arriving in July, industrial consumers are not placing orders, a Chinese trader told Reuters. LNG imports will likely fall as much as 19% this year – by 1 to 15 million tonnes – in what would be the first sizeable drop since China began importing the gas in 2006, according to forecasts by S&P Global Commodity Insights, Wood Mackenzie and SIA Energy.That in turn will take some pressure off Europe and allow the unneeded gas to be diverted there to meet shortfalls in Russian supplies.
Woodside Energy was expressing confidence that the price of liquified natural gas would remain high for the rest of 2022, while reports emerged on Friday of a slide in China’s imports of LNG in May.
Reuters said that a combination of high prices and weak manufacturing due to COVID-19 lockdowns had crimped demand for gas while China’s coal-fired power stations maintained high levels of stocks, unlike last year when electricity rationing was starting out in some parts of the country.
Reuters reported that gas use has fallen further in May as a COVID resurgence caused extended lockdowns across several manufacturing hubs, signalling a slide in future demand that has already shown itself in weak orders for July.
Even for shipments arriving in July, industrial consumers are not placing orders, a Chinese trader told Reuters. LNG imports will likely fall as much as 19% this year – by 1 to 15 million tonnes – in what would be the first sizeable drop since China began importing the gas in 2006, according to forecasts by S&P Global Commodity Insights, Wood Mackenzie and SIA Energy.
That in turn will take some pressure off Europe and allow the unneeded gas to be diverted there to meet shortfalls in Russian supplies.
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