Who really cares if Chiii-na has energy? Maybe their people will be able to breathe relatively clean air for a couple of days if they can't burn coal. Even so, I'm not going to worry about people in a country that wants to take my country over and kill us all off, because we're not Asian.
Who really cares if Chiii-na has energy? Maybe their people will be able to breathe relatively clean air for a couple of days if they can't burn coal. Even so, I'm not going to worry about people in a country that wants to take my country over and kill us all off, because we're not Asian.
What happens in China rarely stays in China--and I am not just talking about SARS-CoV-2.
China's economic woes impact all the economies of the Pacific Rim. China's economic woes impact a number of supply chains that deliver goods into the United States. China's economic woes ultimately impact the US economy, and not necessarily in a good way.
If winter weather spawns an energy crisis in China, they are of a size to bid up further the prices of oil, coal, and natural gas worldwide--and that could make winter heating even more expensive for the United States.
What happens in China rarely stays in China. That's why it matters.
Russia not so much, although Russia might have some success selling coal to China. Coal has to be transported by rail anyway, and so the lack of pipeline infrastructure is less of an obstacle there. However, China is less an enthusiastic purchaser of Russian energy exports than you might think. Despite Putin forking over billions for the Power of Siberia pipeline, China purchases more natural gas from Turkmenistan than from Russia.
But no matter where China buys its coal, oil or natural gas, the more they buy the more the prices of these commodities get bid up worldwide. China can move the needle on West Texas Intermediate without even actually buying a single barrel of it.
Hi Peter. All good points, my response was more directed towards the other poster that was sort of implying that the only place that could supply China energy was the US. The countries I listed were from a quick google search of ChinaтАЩs top energy imports by country of origin 2020. It may not be 100% accurate and it itтАЩs more complicated as you say. Totally agree with what your saying.
BTW: I didnтАЩt realize China was a major re-exporter of LNG. Maybe thatтАЩs were Australia was looking to import cheap LNG from for our East Coast domestic market even though weтАЩre one of the worlds largest exporters of LNG.
China's economy is contracting just as Russia's is--which means their structural demand for natural gas and even oil is reduced at the moment. China has been seizing the moment to flip some surplus shipments of LNG to Europe at a nice markup.
Which is a testament to the precarious state of China's reserves of coal and hydro heading into winter--Beijing told the LNG exporters to stop, and stockpile the natural gas instead.
China is looking to do some value-add flipping of Russian oil by refining it first then selling the distillates and refined products back to Europe, and that still seems to be on the table.
Wow. That doesnтАЩt look good for the Australian economy either, I think we were their biggest LNG supplier at some stage. Stockpiling is easier said than done in Australia, IтАЩm pretty sure we just extract it, process it and ship it. There would be very little intermediate storage capacity that I know of. Like you said what happens in China has major effects outside China.
As I understand the industry, one really doesn't "store" LNG for very long. Rather, one regassifies the LNG back into regular natural gas, after which it can be piped into salt domes or other geological spaces for long term storage.
Liquefying natural gas basically involves chilling it to below -260┬░F where there's a state change from vapor to liquid. Keeping LNG in a liquid state would require maintaining either the temperature or the pressure (the temperature would be the easier and less dangerous of the two options). Liquefaction is a transport modality; it does not present as a storage modality at all.
Exactly, thatтАЩs AustraliaтАЩs problem, we extract it, process it, compress it and ship it. WeтАЩve got no where to put it like the US salt domes. WeтАЩre pretty much set up as JIT supplier. We donтАЩt even bring it onshore in some cases, itтАЩs processed and compressed offshore straight into the transport vessel then shipped direct to the customer. ThatтАЩs the problem for Australian producers, unless we cut back production weтАЩve got to sell it pretty much at any price. Most of the contracts are long term supply agreements, not sure if theyтАЩre take or pay. But when your biggest customer says stockpile it and youтАЩve got no тАЬwarehouseтАЭ and itтАЩs not easy to slow down production youтАЩve got a problem. The capital cost of these projects is staggering and they rely on massive throughput to be profitable. Remember when the spot price of oil went negative? Similar problem.
Who really cares if Chiii-na has energy? Maybe their people will be able to breathe relatively clean air for a couple of days if they can't burn coal. Even so, I'm not going to worry about people in a country that wants to take my country over and kill us all off, because we're not Asian.
What happens in China rarely stays in China--and I am not just talking about SARS-CoV-2.
China's economic woes impact all the economies of the Pacific Rim. China's economic woes impact a number of supply chains that deliver goods into the United States. China's economic woes ultimately impact the US economy, and not necessarily in a good way.
If winter weather spawns an energy crisis in China, they are of a size to bid up further the prices of oil, coal, and natural gas worldwide--and that could make winter heating even more expensive for the United States.
What happens in China rarely stays in China. That's why it matters.
We will probably be one of the countries supplying them with fuel for heating this winter.
We are already selling our strategic oil stock pile to them.
No need, Russian Federation, Saudi Arabia, Iraq, Australia and Angola probably already got yaтАЩ covered ЁЯША
Saudi Arabia maybe (but at a premium).
Russia not so much, although Russia might have some success selling coal to China. Coal has to be transported by rail anyway, and so the lack of pipeline infrastructure is less of an obstacle there. However, China is less an enthusiastic purchaser of Russian energy exports than you might think. Despite Putin forking over billions for the Power of Siberia pipeline, China purchases more natural gas from Turkmenistan than from Russia.
But no matter where China buys its coal, oil or natural gas, the more they buy the more the prices of these commodities get bid up worldwide. China can move the needle on West Texas Intermediate without even actually buying a single barrel of it.
What happens in China rarely stays in China.
Hi Peter. All good points, my response was more directed towards the other poster that was sort of implying that the only place that could supply China energy was the US. The countries I listed were from a quick google search of ChinaтАЩs top energy imports by country of origin 2020. It may not be 100% accurate and it itтАЩs more complicated as you say. Totally agree with what your saying.
BTW: I didnтАЩt realize China was a major re-exporter of LNG. Maybe thatтАЩs were Australia was looking to import cheap LNG from for our East Coast domestic market even though weтАЩre one of the worlds largest exporters of LNG.
China's economy is contracting just as Russia's is--which means their structural demand for natural gas and even oil is reduced at the moment. China has been seizing the moment to flip some surplus shipments of LNG to Europe at a nice markup.
Which is a testament to the precarious state of China's reserves of coal and hydro heading into winter--Beijing told the LNG exporters to stop, and stockpile the natural gas instead.
China is looking to do some value-add flipping of Russian oil by refining it first then selling the distillates and refined products back to Europe, and that still seems to be on the table.
Wow. That doesnтАЩt look good for the Australian economy either, I think we were their biggest LNG supplier at some stage. Stockpiling is easier said than done in Australia, IтАЩm pretty sure we just extract it, process it and ship it. There would be very little intermediate storage capacity that I know of. Like you said what happens in China has major effects outside China.
As I understand the industry, one really doesn't "store" LNG for very long. Rather, one regassifies the LNG back into regular natural gas, after which it can be piped into salt domes or other geological spaces for long term storage.
Liquefying natural gas basically involves chilling it to below -260┬░F where there's a state change from vapor to liquid. Keeping LNG in a liquid state would require maintaining either the temperature or the pressure (the temperature would be the easier and less dangerous of the two options). Liquefaction is a transport modality; it does not present as a storage modality at all.
Exactly, thatтАЩs AustraliaтАЩs problem, we extract it, process it, compress it and ship it. WeтАЩve got no where to put it like the US salt domes. WeтАЩre pretty much set up as JIT supplier. We donтАЩt even bring it onshore in some cases, itтАЩs processed and compressed offshore straight into the transport vessel then shipped direct to the customer. ThatтАЩs the problem for Australian producers, unless we cut back production weтАЩve got to sell it pretty much at any price. Most of the contracts are long term supply agreements, not sure if theyтАЩre take or pay. But when your biggest customer says stockpile it and youтАЩve got no тАЬwarehouseтАЭ and itтАЩs not easy to slow down production youтАЩve got a problem. The capital cost of these projects is staggering and they rely on massive throughput to be profitable. Remember when the spot price of oil went negative? Similar problem.
I do remember. And you're right: Australian NatGas is not likely to sell much to China under present circumstances.
Although I suspect Europe might be willing to take a tanker or two of LNG off Australia's hands! (Just a hunch!)