China resumes spot LNG imports; PetroChina buys December cargo

26 October 2012 10:36  [Source: ICIS news]

SINGAPORE (ICIS)--China has resumed imports of liquefied natural gas (LNG), with PetroChina purchasing a cargo for December delivery from the international spot market, an industry source said on Friday.

Details of the purchase were not available and PetroChina officials were not immediately available to comment.

PetroChina is likely to receive the December cargo at its 3.5m tonne/year Rudong terminal in Jiangsu province, east China, the source said.

The state-owned oil and gas major is also seeking another cargo for January 2013 delivery, and is expected to purchase from the same supplier, the source said.

The company is building up its LNG inventory as consumption is expected to peak during the winter season in China, the trader said.

China National Offshore Oil Corp (CNOOC), China’s largest LNG importer, on the other hand, is showing little interest in buying spot cargoes.

“Our [LNG] contractual supplies are sufficient, as the weather is mild in south China, and [the] Shanghai municipality in east China will be well supplied by term cargoes from Malaysia,” a CNOOC source said.

Chinese LNG importers have shown little interest in buying spot cargoes since the second quarter this year, as a result of ample piped gas supply, weak demand from gas-fired power plants and amid a slowing down of China's economy, market sources said.

By: Ricki Wang
+65 6780 4359

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