Indonesia’s Tangguh LNG train outage disrupts deliveries to China

16 November 2012 08:23  [Source: ICIS news]

SINGAPORE (ICIS)--A partial shutdown at the Tangguh liquefied natural gas (LNG) facility in Indonesia is expected to interrupt deliveries of term cargoes to China in the coming month, traders said on Friday.

The BP-operated Tangguh LNG facility in Indonesia has shut its operations at train 2 following a fire on the morning of 6 November, a BP spokesman said.

The Tangguh facility is a long-term LNG supplier to China National Offshore Oil Corp (CNOOC) and usually ships three or four cargoes totalling 180,000-240,000 tonnes per month into CNOOC’s Putian terminal in Fujian province.  

Since CNOOC distributes most of these imported cargoes to users through pipelines after regasification, the delay of arrivals will disrupt its supply to consumers in Fujian, a source from the Fujian terminal said.

Fujian is expected to see robust gas demand from local gas-fired power plants in December as a result of falling hydropower supply, the source added.

Meanwhile, fuel demand from the manufacturing industry is also likely to grow in the following month as producers of art ceramics run their plants at high operating rates in order to fulfil more overseas orders around Christmas in late December, market sources said.

China’s LNG prices are likely to be supported if Fujian-based traders and consumers buy domestically produced volumes in view of tight supply of imported cargoes, the sources added.

By: Ricki Wang
+65 6780 4359

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