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Letter from China: Beijing targets Australian spot LNG

LNG is the latest Australian export targeted by China in its trade spat with Canberra. Even limited moves represent an escalation in the standoff

Long-term purchases of Australian LNG by China’s NOCs look to have been deemed sufficiently strategically important by Beijing to escape any fallout from deteriorating relations between the two nations. But a handful of smaller Chinese LNG importers have felt an impact, having been told to avoid purchasing new Australian cargoes over the next year. The aim appears to be to curtail spot deliveries from Australia, which overtook Qatar last year to become the world’s top LNG supplier. And the Canberra administration should be alarmed by China’s willingness to up the ante on LNG. US exporters such as Cheniere could stand to gain if the standoff stretches into the winter A year ago



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