Northern China is facing a severe winter, and the supply of natural gas is still cut off. The people are suffering so much that they gather wood and light fires to keep warm.

(picture taken from Weibo)

[Financial Channel/Comprehensive Report] Russian President Vladimir Putin originally planned to blackmail Europe by cutting off the supply of natural gas.

Unexpectedly, Europe is actively looking for alternative sources, coupled with the relatively mild temperature this winter, Putin's energy weapons are not effective.

On the contrary, China, Russia's good friend, is in bad luck. The winter in some parts of northern China is severe, and the new gas pipeline built by China and Russia will take several years to be used. China can only be forced to deal with high and fluctuating energy prices.

The US media joked that Russia's energy weapons accidentally injured China.

Russia's energy extortion against European countries, with alternative supply rescues and relatively warm European winters, has curbed the economic losses caused by Moscow's cut-off of European gas supplies.

The Wall Street Journal reported that Putin's energy arsenal is hurting another natural gas buyer and a market Russia is banking on growth - China.

Please read on...

The report pointed out that the winter in parts of northern China has been particularly cold this year, and the high price of natural gas in China reflects the uncomfortable reality that Russia's decision to use its influence in the global gas market as a weapon is bringing economic and political consequences to the Chinese government. problem.

According to the report, the import price per ton of China's pipeline natural gas in December was 57% higher than that in September 2021, and the import price of liquefied natural gas also increased by 49%.

But the prices that residents pay their utilities for natural gas are regulated and little changed.

Due to restrictions on downstream sales prices, the state-owned Chinese state-owned company PetroChina incurred a huge loss of RMB 8.9 billion in the third quarter of natural gas imports alone.

Smaller companies that were unable to negotiate favorable supply deals with importers or domestic gas producers such as China National Petroleum Corp. now face a global price spike that could take a severe financial hit.

In order to avoid losses, utility companies in some cities in China had no choice but to reduce the supply of natural gas regardless of the freezing of the people.

Many areas in Hebei Province will cut off natural gas supply between midnight and 6 am.

The report bluntly stated that originally, the relationship between Russia and the West was broken, and China would obtain a large amount of cheaper Russian energy due to the construction of new pipelines.

However, China is now in an embarrassing stage. On the one hand, it is facing a cold winter. On the other hand, China’s natural gas price reform has not yet achieved success, so it has to deal with high and fluctuating energy prices.

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