Gazprom hopes China will buy US LNG, not European

According to the latest Reuters report, after the signing of a trade deal between Washington and Beijing, Gazprom is hopeful that China will purchase the majority of US-produced LNG cargoes, not European.

Speaking at a recent investor meeting, the head of Gazprom’s exporting arm, Elena Burmistrova, noted that weak European gas pricing might curb the company’s LNG supplies to the region, due to low prices and increased rivalry.

As US gas producers look to expand their markets and continue their steady growth, LNG exports are proving to be a profitable avenue through which to offload large quantities of shale gas.

This activity is a direct threat to Gazprom’s dominance in Europe.

According to Reuters, China has recently restarted talks with US LNG exporters to purchase greater quantities of LNG, following the signing of a Phase 1 accord between the two countries.

This move is very favourable for Gazprom, since the arrival of new US LNG cargoes in Europe has had a negative impact on gas prices in the region.

However, the company is reportedly closely monitoring the situation, in light of China’s recent suspension of some LNG purchases due to weaker demand caused by the ongoing coronavirus epidemic.

Source: LNG Industry Magazine