[Preview of the Weekly] The Covert Battle Over the Global Natural Gas Market: Who is Profiting from Arbitrage? How Should Chinese Enterprises Respond? (AI Translation)
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- Janusz Piechociński, former Deputy Prime Minister of Poland, expressed frustration on social media that Venture Global had not delivered any LNG to Poland despite a contract stipulating delivery over a year ago. The company has been selling spot LNG to Europe at high prices since the Russia-Ukraine conflict disrupted traditional gas supplies, earning about $18 billion in revenue.
- Multiple companies, including BP, Shell, Edison, Repsol, GALP, and Sinopec from China (which has the largest-scale LNG long-term agreement with the U.S.), are planning international arbitration against Venture Global for contract breaches. The company cites force majeure due to equipment issues and delays deliveries until late 2024 while continuing spot market transactions.
- The global LNG market is shifting from bilateral 'point-to-point' deals towards more flexible and volatile multilateral trade. Despite current uncertainties in price and demand trends causing hesitation in long-term contract signings, natural gas is still seen as a clean transitional energy source with demand expected to peak around 2040; however, the peak for LNG might occur later due to its flexibility.
文｜财新周刊 郭霁莹 罗国平
By Caixin Weekly's Guo Jiying and Luo Guoping
11月23日，波兰原副总理Janusz Piechociński在社交媒体X上愤然称，美国公司Venture Global（下称“维吉公司”）本应在一年多前交付的液化天然气（LNG），迄今没有一船运抵波兰，直呼“美国人没有遵守合同规定”。
On November 23, Janusz Piechociński, former Deputy Prime Minister of Poland, expressed his indignation on social media platform X, stating that the liquefied natural gas (LNG) which was supposed to be delivered by the American company Venture Global (hereinafter referred to as "Venture Global") more than a year ago has not yet arrived in Poland. He exclaimed that "the Americans have not complied with the contract."
2022年3月1日，俄乌冲突爆发一周后，维吉公司位于墨西哥湾入海口的液化厂将美国页岩气冷却至零下160摄氏度的液态，通过Calcasieu航道，向荷兰与法国出口了第一船LNG。据壳牌2023年10月底的数据，维吉公司自2022年初以来对欧洲等高价市场销售现货，所获收入高至约180亿美元。
On March 1, 2022, a week after the outbreak of the Russia-Ukraine conflict, Venture Global LNG's facility located at the mouth of the Gulf of Mexico cooled American shale gas to a liquid state at minus 160 degrees Celsius and exported its first shipment of LNG to the Netherlands and France via the Calcasieu Pass. According to data from Shell as of late October 2023, Venture Global LNG has earned approximately $18 billion in revenue since the beginning of 2022 by selling spot cargoes to high-priced markets such as Europe.
波兰国营油气公司Orlen准备向维吉公司发起国际仲裁。2023年以来，已有多家公司与维吉公司陷入法律纠纷，包括英国石油（BP，NYSE：BP）、荷兰壳牌（Shell，NYSE：SHEL），意大利能源企业Edison、西班牙国家石油公司Repsol、葡萄牙最大能源公司GALP，以及中国国有油气公司中国石化（600028.SH）等。这些油气公司分别与维吉公司签署了为期20年、每年100万—400万吨不等的长期协议（下称“长协”），其中中国石化的长协高达每年400万吨，也是中美史上最大规模LNG长协。
Poland's state-owned oil and gas company Orlen is preparing to initiate international arbitration against Venture Global. Since the beginning of 2023, several companies have been embroiled in legal disputes with Venture Global, including British Petroleum (BP, NYSE: BP), Royal Dutch Shell (Shell, NYSE: SHEL), Italy's Edison, Spain's Repsol, Portugal's largest energy company GALP, and China's state-owned oil and gas company Sinopec (600028.SH). These oil and gas companies have each signed long-term agreements spanning 20 years with annual commitments ranging from 1 million to 4 million tons with Venture Global. Notably, Sinopec's agreement involves an annual commitment of 4 million tons, making it the largest-scale LNG long-term agreement in Sino-American history.
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