SINGAPORE/LONDON- Chinese firms are set to become a major trading force in the global liquefied natural gas market in coming years, thanks to liberalizations at home and recently signed long term contracts for record amounts of LNG from US suppliers.
Setting their sights beyond the domestic market, state-run Sinopec Corp, Sinochem Group, privately-controlled ENN Natural Gas Co and China Gas are building up trading teams from Beijing, Singapore to London.
China’s push into the international LNG market comes two decades after it made a similar big splash in oil trading, and will put its firms in competition with established players like Shell, TotalEnergies and Vitol.
Fortunately, the pie is growing. By 2027, analysts forecast spot trade in LNG will be $20 billion, more than double its 2020 value.
Last year, China’s imports soared by 18 percent to a record 79 million tons, overtaking Japan as the world’s largest LNG buyer. China’s economic recovery from the COVID-19 pandemic was one factor, but the other was a pipeline reform that allowed more firms to become importers.
