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…
Free ReadRussia’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…
Free ReadWith 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
Free ReadChina’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…
Free ReadThough 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

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.