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Market Chatter: Chinese LNG Importers Consider Alternate Supply Options Amid Middle East Disruptions

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Liquified natural gas importers in China are considering supply alternatives for liquefied natural gas in order to reduce their dependence on Qatar amid the ongoing disruptions in the Strait of Hormuz, Bloomberg reported Friday, citing undisclosed sources.

China's state-owned energy majors are in talks with suppliers who aren't dependent on the Persian Gulf for shipments, with Canada among the exporters being considered. The companies are seeking long-term supply contracts that would start before 2030 and last at least 10 years.

China, which is Qatar's largest buyer and imported 30% of its supply from the country last year, is unlikely to terminate its ongoing binding agreements with Qatar, the report added.

In the April-June quarter, China imported about 100,000 tons of LNG from Qatar, significantly lower than 4.7 million tons during the corresponding period last year, the report said, citing ship-tracking data.

Separately, the Chinese government has hiked domestic retail petrol and diesel prices effective Saturday due to an increase in global oil prices amid the recent escalation in the Iran conflict, Reuters reported Friday, citing the National Development and Reform Commission.

Retail petrol and diesel price caps will rise by 300 yuan (USD 44.28) and 290 yuan per metric ton, respectively. The NDRC assesses and revises fuel price caps every 10 working days and reduced them on July 3 after cutting prices twice in June, the report said.

has reached out to NDRC and the National Energy Administration for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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