Affected by the Iran conflict, Chinese enterprises are seeking to reduce their reliance on Qatar's liquefied natural gas.

Chinese companies are seeking to reduce dependence on Qatar's liquefied natural gas amid Iran-related conflicts

Due to ongoing disruptions threatening shipping in the Strait of Hormuz, Chinese LNG importers are exploring various alternatives to lessen their reliance on Qatar. According to sources cited by Bloomberg, major state-owned buyers including Sinopec and CNPC are currently negotiating with fuel exporters that do not require transportation through the Persian Gulf.

The sources said these Chinese enterprises are aiming to sign supply contracts with delivery starting before 2030 and contract durations of at least ten years. Two of the sources mentioned Canada as one of the potential supply sources under consideration. Sinopec and CNPC did not immediately respond to requests for comment.

This shift represents one of the clearest signs yet that the Iran conflict could fundamentally reshape the global LNG market, as major importing nations reassess their risk exposure in the Persian Gulf region.

As the world’s largest LNG importer, China is Qatar’s biggest customer; last year, Qatar supplied nearly 30% of China’s LNG. In recent years, the two countries have signed several of the largest industry agreements, which have strongly supported Qatar’s large-scale expansion plans.

The sources noted that Beijing is not expected to attempt to cancel existing contracts with Qatar, as these agreements are legally binding. Another factor under consideration by Chinese firms is avoiding long-term commitments to the United States—the world’s largest LNG exporter—due to escalating trade tensions.

Last year, in retaliation for U.S. tariffs on Chinese goods, China imposed tariffs on American LNG, leading to a sharp decline in trade volumes between the two countries.

Previously, Qatar had been working rapidly to resume operations at facilities shut down in March due to Iranian attacks. However, renewed conflict in the Strait of Hormuz region has effectively paralyzed this critical waterway again, forcing Qatar to suspend work on restarting Ras Laffan—the world’s largest LNG plant.

According to ship-tracking data compiled by Bloomberg, China imported only about 100,000 tons of LNG from Qatar between April and June this year—compared to 4.7 million tons during the same period last year.

Source: rfi

Original: toutiao.com/article/1870989124536523/

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