China urged its liquefied natural gas (LNG) importers to procure more supply to fix its energy crisis, while providing little financial support for firms paying record-high rates for the super-chilled fuel, the German news agency reported.
The government is not providing enough subsidies for recent purchases, making it difficult for the nation’s smaller gas distributors to meet the request to secure enough fuel before winter, Bloomberg quoted traders with knowledge of the matter as saying.
While some firms are avoiding buying for now, they may ultimately have to bow to Beijing’s wishes.
Asian LNG prices surged to a record high this week on sustained demand from China and Britain amid a power crunch as the winter season begins.
The world is currently facing a stifling energy crisis in light of the recovery of economic activities post coronavirus, while not enough supply of crude oil and natural gas have been seen in the markets for various reasons.