China could face ‘stronger competition’ in energy imports: Analyst

This is due to the changing energy supply pattern amidst the Russian conflict with Ukraine.

China, as the market with the largest energy demand, will likely adjust its energy strategy as it could face stronger competition in energy imports as amidst the continuing conflict between Russia and Ukraine, a research firm found.

“Geopolitical upheaval in theglobalenergysupply and demand sector will dampenRussia’s oil and gas exports but will increaseenergydemand for the Middle East, the United States, Africa, and Australia,” independent think tank ANBOUND said in a report.

ANBOUND noted that the climate for China to getenergysupplies fromRussiamay improve in the future, even as it will likely tighten China'senergysupply "connection" toRussia; but China may also face stronger competition when importingenergyfrom other regions or investing inenergy.

Moreover, ANBOUND noted Europe will need to look for new sources of energy supply outside of Russia to ensure its energy security.

Citing the Directorate-General for Energy for the European Union (EU), the largest importer of natural gas in the world in 2021 is the EU. Russia accounted for 41% of the imports, followed by Norway and Algeria with 24% and 11%, respectively.

“We estimate that if Europe reduces its access toenergyfromRussia, one of the biggest beneficiaries will be the major United States producers,” ANBOUND projected.

ANBOUND also sees Europe will likely restructure its consumption structure, which could lead to the delay or pivot away from abandoning nuclear, or increasing coal applications amongst others.