OUR China asked utility companies importing natural gas to stop reselling LNG natural gas (LNG) to buyers in Europe and Asia as it seeks to secure supplies for them ahead of the winter season, according to Bloomberg news agency.

China’s National Development and Reform Commission has asked PetroChina Co, Sinopec and Cnooc Ltd to keep winter cargo for domestic use, the report said, citing people familiar with the matter.

There are no comments yet from the agencies involved, according to Reuters.

The news comes as Chinese LNG importers seek to stay out of the spot supply market this winter, with demand falling to its lowest level since 2002, meaning the world’s largest LNG importer is likely to avoid competition from the crisis-hit Europe for supplies.

The Chinese authorities announced today that the country will significantly increase its ability to supply energy and essential goods, reaffirming the policy of stabilizing commodity prices and securing supplies.

Commission proposal for a “dynamic” gas ceiling

Reuters reveals details of a “dynamic” ceiling on natural gas prices in the European Union, which is expected to be proposed by the Commission this week.

At the suggestion of the agency, a mandatory limitation of the range of price fluctuations per day for monthly energy contracts will be introduced.

As reported, the European Agency for Cooperation between Energy Regulators (ACER) will be responsible for setting the price ceiling for liquefied natural gas (LNG) until March 23.

The Commission is also suggesting possible interventions in the Dutch TTF, which is used as a starting point for contracts and ultimately gas prices in Europe.

Finally, as a “last resort”, the European Commission will propose setting a “dynamic” market price at which natural gas can be sold on the TTF spot market under certain conditions.

^{According to BLOOMBERG, REUTERS}