Energy

China Halts Natural Gas Sales To Fuel-Starved Europe Ahead Of Winter: REPORT

(Photo by Lintao Zhang/Getty Images)

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Jack McEvoy Energy & Environment Reporter
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The Chinese government told state-owned oil and gas companies to stop selling liquified natural gas (LNG) to an energy-deprived Europe in order to stockpile domestic fuel supplies in time for winter, according to Bloomberg.

The National Development and Reform Commission, China’s chief economic management agency, has requested that PetroChina, Sinopec and China National Offshore Oil Corporation (CNOOC) save winter gas supplies for domestic use, the outlet reported, citing people familiar with the matter. The decision could deepen Europe’s energy crisis as the continent continues to face extreme natural gas shortages, spurring governments to encourage electricity rationing as household electricity prices continue to soar. (RELATED: European Countries Push Back After EU Tells Them How Much Gas They Can Use)

Europe’s fuel shortages have been exacerbated by Russia as the nation repeatedly cut off natural gas supplies via the Nord Stream 1 pipeline in response to European sanctions following Moscow’s invasion of Ukraine. The European Union agreed to tax energy companies’ windfall profits to help citizens pay utility bills and is set to propose a last-resort “dynamic” price cap for gas as well as mandatory limits on how gas prices can change in a single day, according to Reuters.

China became an important exporter of LNG after global supplies became disrupted by the war in Ukraine. The nation’s strict COVID-19 policies left suppliers with excess natural gas due to low domestic fuel demand, according to Business Insider. More than four million tons of Chinese LNG, or roughly 7% of Europe’s imports in the first half of 2022, were estimated to be resold in August, according to Nikkei Asia.

LNG (liquefied natural gas) tanker ‘Golar Igloo’ arrives in the port of Eemshaven, north of Groningen, on September 4, 2022. – – Netherlands OUT (Photo by Siese VEENSTRA / ANP / AFP) / Netherlands OUT (Photo by SIESE VEENSTRA/ANP/AFP via Getty Images)

Chinese President Xi Jinping said Sunday that China must continue to use fossil fuels to ensure its energy security during a speech, according to Bloomberg.

The commission did not immediately respond to the Daily Caller News Foundation’s request for comment.

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