Chinese companies are importing U.S. natural gas and reselling the shipments at higher prices globally, according to a new report from the nonprofit American Security Project shared first with E&E News/POLITICO.
The nonpartisan group, started in 2006 by former Secretary of State John Kerry and former Defense Secretary Chuck Hagel, says the “predatory” resale strategy directly benefits the Chinese government.
“State-managed inventories, preferential contracts, and market control allow Beijing to purchase and store gas volumes during periods of oversupply and reexport these volumes at a premium during supply shortfalls,” says the report, which was authored by ASP senior research scientist Courtney Manning. It calls for reduced U.S. LNG exports and more investment domestic renewable energy.
Chinese revenue from LNG resale is boosting renewable energy in the country while also “fueling its authoritarian objectives” the report said.
