China: Recommendation to state importers to stop reselling liquefied natural gas to foreign customers

China has recommended that state importers stop reselling liquefied natural gas (LPG) to foreign customers as the government wants to ensure a safe supply of its population in the winter heating season, Bloomberg reported.

People familiar with the matter told the American news agency that the National Development and Reform Commission has asked the companies PetroChina, Sinopec and CNOOC to save winter supplies for domestic use, reports Tanjug.

China's domestic energy demand has fallen in recent months, prompting Beijing to resell TPG's surplus on the global market. Among the main buyers were Europe, Japan and South Korea.

"China has large TPG purchase contracts with exporters such as the United States (USA), so traders from that Asian country have been diverting part of their shipments to Europe this year due to weak demand at home," the New York agency said.

Data shows that gas deliveries from Russia to Europe fell from 40 to nine percent, while TPG's imports to the European Union rose 60 percent compared to the previous year, despite being much more expensive than pipeline deliveries.

However, current forecasts of a small gas supply deficit are likely to have prompted Beijing to make the move, as the government has vowed to keep homes warm this winter.

President Xi Jinping also addressed energy security issues during his two-hour speech on Sunday.

According to Bloomberg, China's move to secure domestic gas supplies could deplete shipments to Europe and worsen the region's energy crisis this winter.