(Bloomberg) -- Europe may face a further setback in efforts to manage its energy crisis if there’s a revival in China’s demand for liquefied natural gas, according to Goldman Sachs Group Inc.

Weaker LNG consumption as a result of coronavirus curbs has seen the nation add to inventories, and enabled importers to capitalize on high prices by reselling cargoes -- boosting the availability of shipments for European buyers, Goldman’s head of natural gas research Samantha Dart told Bloomberg Television in an interview. 

“They have been reselling their LNG cargoes out in the spot market. The more they resell, the more is available for Europe,” Dart said. “That brings up an important risk -- the moment Chinese economic activity picks up, we may see this quickly change and as a result fewer cargoes for Europe.”

China’s total domestic demand for natural gas was down in April and May from a year earlier, and about flat in June, she said. The country’s LNG imports could fall 14% this year on factors including higher prices and a subdued economy, according to Wood Mackenzie Ltd.

Read more: China Looks to Resell LNG as World Grapples With Gas Shortage

The global energy squeeze means countries will need a more flexible short-term approach on the move to low-emissions sources, because growth in renewables isn’t yet sufficient to offset any gap in natural gas supply, Dart said.

“The energy transition is not going to stop, but it is going to have to be more tolerant of hydrocarbons for a little bit longer when we don’t have enough natural gas,” Dart said. “There is no other way but to bring in coal, bring in oil, bring in other fuels.”

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