China Modifies The Seaborne LNG Map, Seeks Supplies From The United States

China has modified the map of global seaborne LNG trades this year that will result in the advancement of the overall tonne-mile scenario for LNG carriers, which have hit record spot earnings of roughly $300,000 per day over the past month.

China Modifies The Seaborne LNG Map, Seeks Supplies From America

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Having surpassed the likes of Qatar, Malaysia and Indonesia, the United States is now China’s second largest LNG supplier.

“China appears to be have been shoring up its energy requirements, signing up nearly a dozen long-term LNG contracts this year, with half of those being done in the fourth quarter. Although Australia looks set to be the biggest supplier of LNG to China this year, the US is moving up the ranks to take second position, according to S&P Global Platts,” stated a new report from brokers Lorentzen & Stemoco today.

China received 25.9m tonnes of LNG from Australia in the first 10 months of this year, which was noticably more than any other gas exporter. Unfortunately, Australia’s share of total imports went down to 39.7% from 43% in 2020. In the first 10 months of this year, American LNG exports accounted for for 11% of China’s total imports, up from 3% in 2020.

Last week, China’s Foran Energy signed a 20-year LNG supply contract with Cheniere to purchase four LNG cargoes a year from 2023 to 2042, which happens to be the fourth big gas deal signed between the two nations in the last few months.

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China outperformed Japan earlier this year to become the world’s largest importer of LNG, adding to a long list of commodities in which the People’s Republic is the number one buyer.

Clarksons has reckoned that China’s greater reliance on non-Asian providers of LNG this year has helped raise the tonne-mile demand by 30% in 2021.

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