In this issue

 

The Chinese economy has recovered swiftly after lockdowns were lifted and factories already operate at 87% of normal output since early April, pushing up energy demand. Australia emerged as China’s…
Russia’s state gas company Gazprom seeks to boost gas production in Yakutia and enhance pressure as well as throughput at the ‘Power of Siberia’ pipeline. There is “plenty of supply,”…
Manufacturing is resuming in China, but the recovery from the coronavirus lockdown still needs to translate in a substantial rise in energy demand. China was the first to implement containment…
Terms of natural gas sales are changing. In the power sector gas no longer competes with oil, but coal and renewables – making hub-indexation traders' preferential choice. Across Asia, including…
The area around Tianjin in northeast China currently has floating and onshore import terminals and is already the nation’s leading LNG importer, but an expansion of the onshore terminal and…
With the Northern Sea Route from Arctic Russia to North Asia opening up earlier this year, the first LNG cargo is on route from Novatek’s Yamal LNG export terminal to…
Avenir LNG has obtained debt financing to meet the remaining payments on delivery of six small-scale LNG carriers under construction in Asia. The company, owned by three Norwegian shipping firms,…
Thursday, 04 June 2020
Total of 1.80mmt on the water with a delivery horizon of 7th July, with more than half due in the North China region. Three cargoes originated in the United States…
Thursday, 04 June 2020
China’s m/m LNG offtake grew by 0.42mmt in May, increasing robustly by 7.17% to 6.28mmt. Monthly Chinese offtakes had also grown by 1.48mmt (33.8%) in April, meaning that the country…
The first LNG cargo from the United States for more than a year is heading for the Chinese port Tianjin, east of Beijing, from the Cameron export plant in Louisiana…
Though Chinese workers have returned to factories of Airbus, General Motors and Toyota in recent days, many remain shuttered due to coronavirus quarantine measures. The recovery of Chinese gas demand…
Though the latest oil price crash hits U.S. upstream companies, for Asian buyers it’s a blessing as the pricing of oil-indexed long term gas contracts is bound will come down…
Wednesday, 01 April 2020
Indian utility buyers have stepped up LNG imports, snapping up distressed cargoes for cheap. Coal-to-gas switching allows Indian power generators to absorb a large share of cargoes left uncommitted as…
PetroChina, affiliate of state-owned China National Petroleum, recorded a 6 percent rise in annual revenues to 2,520 billion Chinese yuan ($350.8 bn) but net profits fell 14 percent. Hence, the…
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News Nudges

Freeport Train-3 aims to send cargoes to China

Commissioning of Freeport LNG Train 3 in early May has pushed the plant’s overall nameplate capacity to 15 mtpa, with developers sending some headline-catching cargoes to China. However, overall shipments are down nearly 15% amid subdued demand and low LNG prices. The economic outlook for China – and by extension its LNG demand growth - is uncertain, the country’s latest economic data shows. Finding portfolio players willing to commit to long-term liquefaction tolling agreements (LTA) under prevailing conditions will be difficult, LNG Unlimited Data finds. Consequently, our analysts do not expect Freeport LNG to take its Train 4 FID any time soon, though Train 3 stared operations in early May.


PetroChina vows to slash capital spending

PetroChina plans to “dynamically optimise” its imports in response to record-low oil prices and subdued demand. The aim is to downsize capital spending this year from a previously planned 295 billion yuan ($41bn). The state-controlled company in early May reported a net loss of 16.23 billion yuan ($2.29bn) for Q1-2020 versus a profit of 10.24 bllion yuan ($1.44bn) in the prior-year quarter. Production targets have been lowered in the wake of the coronavirus crisis, as PetroChina's crude oil throughput at refineries fell by 9.6% at the height of the pandemic, reducing profits. Natural gas output increased 8.7% to 1,086.9 billion cubic feet (bcf), driven by capacity build-out.


Petronas supplies LNG in ISO containers to China

Malaysia’s state energy company Petronas has signed a sales and purchase agreement with Tiger Clean Energy to fill LNG into ISO containers at a tank filling facility at Sarawak, Borneo, for onward shipment to China. The LNG-filled containers would subsequently be trucked to remote locations in China without access to the country’s national gas pipeline grid.