China to Diversify LNG Trade Modes

China to Diversify LNG Trade Modes

With the increase of China’s demand for gas, LNG import is more and more important in China’s energy supply. However, the old styled import method led by CNPC, Sinopec and CNOOC seems like to be insufficient now. In fact, Beijing is promoting the marketization of China’s LNG import. The first stage of the marketization reform is to improve the utilization rate of terminals and purchasing modes.

In the morning of September 20, 2018, the LNG import window was sold to the third party for first time through Shanghai Petroleum and Gas Exchange (SHPGX). The provider of the import window is CNOOC, and the buyer is the combination of Zhenhua Oil and Longkou Senton Energy.

According to the announcement published previously, the outturn of the trade is roughly 70 kt. The shipment will arrive at CNOOC Yuedong Terminal on October 22 to 26. The time window for picking up is 45 days. Buyer can pick up LNG in several terminals owned by CNOOC including the ones in Yuedong, Fujian, Shenzhen, Zhuhai, Zhejiang, Tianjin, etc. Among all of them the Yuedong, Dapeng, Zhuhai and Fujian Terminal are the main picking up places, and no less than 55% of LNG should be picked up here. For the rest of LNG, it can be picked up in Zhejiang, Tianjin, Hainan Terminal and etc.

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