CNOOC cuts Putian to Guangdong imported LNG supply on cargo delay

21 March 2014 10:00 Source:ICIS News

SINGAPORE (ICIS)--China National Offshore Oil Corp (CNOOC) has further reduced the supply of imported LNG from the Putian terminal in Fujian to neighbouring Guangdong province because of decreased cargo arrivals, a company source said on Friday.

The arrival of Indonesia LNG cargoes at the Putian terminal was delayed as a result of some problems with the gas liquefaction units in Indonesia.

Just one Indonesia LNG cargo has arrived at the Putian terminal so far in March, the source said.

However, the company will maintain its sales of truck-delivered LNG to the spot market, in order to guarantee the supply via gas pipeline after re-gasification, the source said.

Additionally, most truck-delivered volumes will be supplied to consumers within the Fujian province, thus reducing supplies to the Chaozhou-Shantou region in Guangdong province, the source said.

“The supply to Guangdong fell below 20 trucks (each truck carries 20-21 tonnes), and may drop to none,” the source said.

Imported LNG supplies from CNOOC’s other terminals, such Zhuhai terminal in Guangdong and Ningbo terminal in Zhejiang, were also tight, a separate company source said.

Many consumers have been seeking LNG supplies from Jovo Group’s Dongguan import terminal in Guangdong and LNG producers in northern regions, an LNG trader based in Guangdong said.

Almost half of the truck-delivered LNG supply from the Putian terminal is consumed in Fujian province, and the other half is delivered to consumers in the eastern part of Guangdong province.

By Ricki Wang