China’s CNOOC seeks LNG cargo-swap deal at Fujian terminal

11 July 2012 07:56  [Source: ICIS news]

SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) is seeking to swap one liquefied natural gas (LNG) cargo with other Asian buyers, as the inventories at its Putian receiving terminal in Fujian province are high, a trader in China said on Wednesday.

CNOOC is expecting a 60,000 tonne cargo from France’s Total that is expected to arrive at Fujian in the second half of July.

However, CNOOC wants to re-route it to another regional buyer in exchange for a later shipment, when the inventory levels at its Putian terminal drop, according to the trader.  

The inventory levels at CNOOC’s Putian terminal have been rising, as demand from the power generation industry was weakened by the sufficient hydro-power supply in Fujian.

Furthermore, demand from industrial end-users has been weak because of the economic slowdown in China, market sources said.

The LNG trader said it is hard to say if CNOOC’s attempt to do a swap deal will be successful, as the demand for LNG elsewhere in Asia is also weak.

By: Ricki Wang
+65 6780 4359

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