In this issue

 

Though the Suez Canal Suez blockade has caused much of an uproar on global shipping markets, it only had a modest impact on LNG shipping and spot LNG prices in…
Electric utilities in China avoid investing in gas peaking plants due to cost issues. Fuel prices are bound to rise with the start of China’s national emissions trading scheme (CETS)…
Free ReadChina National Offshore Oil Corp., one of China’s main LNG importers, has issued an advisory statement expressing “regret” at a decision by New York Stock Exchange to delist its shares…
PetroChina, the Chinese major listed in Hong Kong and with LNG and international assets, reported plunges in annual revenues and net profits of over 20 percent and 57 percent respectively…
ENN Group, the leading non-state energy company in China with LNG and city-gas assets, has reported a 2 percent rise in annual revenues to 71.6 billion Chinese yuan ($11Bln), mainly…
Qatar Petroleum has just signed a Sale and Purchase Agreement (SPA) with Sinopec for the supply of 2 million tonnes per annum to Chinese terminals. Under the agreement, LNG deliveries…
Free ReadStrong growth in renewables has reduced the share of coal in China’s power generation mix to less than 50% – for the first time. Fitch Ratings expects the contribution of…
Tuesday, 06 April 2021
1.62mmt on the water with a delivery horizon of 29th April and c. 24 percent due in the North China region, according to our market visibility. At the time of…
China’s month-on-month LNG offtake grew by 1.72mmt in March, increasing robustly by 33 percent to 6.91mmt. Monthly Chinese offtakes had decreased by 3.24mmt (-38 percent) in February, meaning that the…
Free ReadChinese city gas operators have struggled to fulfil the recent spike in gas demand caused by a rebound in industrial activity and strong heating needs in an exceptionally cold winter.…
British energy giant BP has carried out the first direct gas shipment to a Chinese gas customer by supplying an LNG cargo to ENN. The delivery was made possible by…
China Petroleum and Chemical Corp. (Sinopec) seeks more volumes on the spot market after the nation’s economic planning body NDRC urged companies to increase imports of LNG and thermal coal…
China, the world’s second-largest demand market, has connected 7.1 million households to its national gas network over the course of 2020, increasing the country’s gas demand for heating. LNG imports…
Free ReadPrice-sensitive Chinese buyers have turned away from spot LNG for February delivery after Beijing put a lid on domestic prices. Utility buyers in China are reluctant to pay anything above…
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News Nudges

Cartagena bunkers LNG from China with emission offsets

Cartagena, the LNG import terminal in southeast Spain, has hosted the first LNG bunkering operation in the Mediterranean with emissions offsets. Reposl organised the fuelling of the LNG-powered vessel, the Swedish-flagged “Fure Vinga” with 420 cubic metres of LNG. “The uniqueness of the operation is that this is the first time that Repsol, as a supplier of LNG, has guaranteed the compensation of the total CO2 emissions associated with the consumption of this LNG,” said the company. The re-fuelled ship, the “Fure Vinga”, is owned by the shipping company Furetank Rederi, headquartered in Donsö in Sweden. This chemical tanker had arrived in Cartagena from China and was scheduled to continue to its ultimate destination of Rotterdam in the Netherlands.


Pipeline gas gains attractiveness in China

Price-sensitive Chinese buyers increasingly prefer pipeline gas, sold on oil-indexed contracts, over spot LNG -- especially after the latest price spike for spot cargoes. Eager to limit domestic price rises, the National Development Reform Commission (NDRC) has set firm guidelines. Trucked LNG prices are not permitted to exceed 20% of the city gas price guideline, while several LNG import and regas terminals were notified that ex-factory trucked gas prices should not be higher than Yuan 5,500-6,000 per million ton. State-controlled CNOOC, PetroChina, Guangzhou Gas and Guangdong Energy have consequently left some high-priced LNG purchase tenders un-awarded. Instead, they turn to pipeline gas imported from Russia as well as the Central Asian republics of Turkmenistan, Kazakhstan and Uzbekistan.


China’s gas imports jump

China’s combined imports of pipeline gas and LNG imports have risen by 17.5% to 20.80 million tonnes in January and February when unseasonably cold weather pushed up gas demand for space heating. China’s main LNG suppliers are Australia, Qatar, Malaysia, Indonesia, Russia and the US. According to China's General Administration of Customs, Asia’s largest economy also achieved a trade surplus of $103.25 billion for the first two months of 2021.


Total strikes deal with Shenergy Group

French major Total and China’s Shenergy Group, the leading energy player in the port of Shanghai, have signed binding agreements for the supply of up to 1.4 million tonnes per annum of LNG from Total, as well as the creation of a joint venture to expand LNG marketing in China. The joint venture, Total 49 percent and Shenergy 51 percent, will sell LNG supplied by Total to customers in Shanghai and throughout the neighbouring Yangtze River delta region. Additionally, Total will supply LNG to Shanghai Gas, the natural gas distribution subsidiary of Shenergy.