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China Buyers Secure LNG Capacity Slots Amid Low Prices


Chinese LNG buyers are booking more of PipeChina’s spare import capacity from April to December with over 8m metric tons of capacity secured in the latest booking phase according to Bloomberg.

  • PipeChina offers third-party access at various LNG terminals and releases the available capacity for the remainder of the year every month.
  • The increased interest has coincided with spot prices falling to the lowest in three years with Asian spot LNG prices down more than 50% since mid-October.
  • The capacity volume is equivalent to about 123 shipments, assuming a standard cargo size of 65k metric tons.
  • Chinese buyers have secured at least 45 spot LNG cargoes in the last three months according to BNEF with most prices below $10/mmbtu.
  • Provincial/municipal gas/energy companies and major city gas and LNG trading companies accounted for most of the buying interest with only small share for national oil companies CNOOC and PetroChina.

Source: Bloomberg

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