24 May 2012 08:27 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Ordos Xingxing Energy plans to shut its 1m cubic metre (cbm)/day liquefied natural gas (LNG) plant at Ordos in Inner Mongolia on 1 June for a one-month maintenance turnaround, a company source said on Thursday.
The company has been building stocks in order to maintain contract supplies during the shutdown, and “stockpiles have reached about 60% of our storage capacity”, the source said.
However, the source added: “Our maximum stocks can just satisfy contract supplies, and spot supplies would be halted.”
The production shutdown at the northern China plant will lead to falling LNG supply in the local market, thus boosting trading activities, several producers predicted.
“Therefore, prices for June volumes are expected to end the current downtrend,” they added.
Ordos Xingxing Energy has been running its 1m cbm/day LNG plant since November 2008, with feedstock gas supplied by oil and gas giant PetroChina.
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