China’s Jovo Group receives imported LNG cargo from PETRONAS

27 September 2013 12:32  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Jovo Group has received an LNG cargo from Malaysia at its 1m tonne/year import terminal at Dongguan, making it the first private Chinese company to directly receive LNG imports, a source close to the company said on Friday.

The 36,000 tonne cargo was supplied by Malaysia’s PETRONAS and it arrived at the terminal in Guangdong province on 17 September, according to the source from Dongguan Jovo Energy.

Dongguan Jovo Energy is a joint venture of Jovo Group and Guangdong Guangye Investment Group.

The cargo will be available for truck-delivered sales in the Chinese market in October, when LNG demand starts to pick up in Guangdong, the source said.

Jovo Group set the list price for October at yuan (CNY) 6,000/tonne ($980/tonne), the source said.

Imported LNG for September delivery to China was traded at $15.225/MMBtu on a DES (delivered ex-ship) basis, ICIS Heren assessments showed.

The cost is about CNY4,869/tonne, based on an exchange rate of CNY6.15 against the US dollar.

Therefore, Jovo will be able to reap about CNY853 in theory by selling one tonne of imported LNG, taking into consideration processing charges at the terminal only, ICIS C1 Energy’s research showed.

Jovo Group may continue to purchase Malaysia-origin LNG cargoes and is also interested in cargoes from other overseas suppliers, market sources said.

Jovo’s Dongguan terminal is equipped with two 80,000 cubic metre storage tanks.

Jovo Group starts its business in the liquefied petroleum gas (LPG) market and gradually enters clean energy markets of LNG and dimethyl ether (DME).

($1 = CNY6.12)

By: Ricki Wang
+65 6780 4359

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