In this issue

 

China’s LNG offtake in January amounted to 8.37mmt, which was 1.63mmt higher than the country’s total imports of 6.74mmt in November, thus increasing significantly by 24 percent. Since this report…
Free ReadChina’s domestic gas market tightens as the winter approaches and CNOOC anticipates a 10% rise in demand to 148.7 billion cubic meters (bcm). In northern China, gas demand peaks during…
City-gas distributors in China will benefit from timelier fuel-cost pass-through under the national gas market reform, Fitch Rating reckons. With pipeline access now open to all, those with access to…
President Xi Jinping has pledged that China, the world’s largest carbon emitter, will reach peak emissions before 2030 and aspires to become carbon-neutral by 2060. If realized, this ambitious goal…
China Petroleum and Chemical Corp., better known as Sinopec, has seen net profits slump 45.7 percent to 23.51 billion Chinese yuan ($3.5 billion) in the year to date in a…
Free ReadChina National Offshore Oil Corp. (CNOOC) has raised its year-to-date domestic gas production to 311.3 billion cubic feet (bcf), up from 250.6 bcf, in a first step towards making gas…
Wison Offshore and Marine, the owner of the Chinese shipyard at Nantong in Jiangsu province, has started to modernize the yard’s LNG shipbuilding capability. The upgrade will expand the yard’s…
U.S. liquefaction plant developer Venture Global sees LNG-fuelled power generation as “a counter” to China’s building spree of new coal power units. By turning to LNG, utilities can “regain control…
Monday, 02 November 2020
Free Read2.77mmt on the water with a delivery horizon of 1st December, with c. 44 percent due in the North China region. At the time of writing, there were also cargoes…
China’s LNG offtake declined by 0.49mmt month-on-month in October, decreasing significantly by 8.7 percent to 5.07mmt. Monthly Chinese offtakes had grown by 0.41mmt (7.7 percent) in August, whereas month-on-month demand…
Asian spot LNG prices have risen to a more than a six-month high in mid-August on concerns over production from Australia’s Gorgon plant. Gorgon LNG Train-2 has been shut for…
China remains the largest market for investment in 2020, with as the initial 12% fall in energy spending is now getting compensated by revived industrial activity and a renewed hunger…
Free ReadAsia is expected to account for the highest global LNG regasification capacity increases. The region is forecast to contribute about 69% of the total regasification capacity additions by 2024. According…
Fitch Ratings believes the recent gas-fired power tariff cut in China's Guangdong province came in response to the falling spot gas price. The government aims to increase the ratio of…
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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.