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.