CNOOC to open up long-term LNG terminal access

Image courtesy of CNOOC

China National Offshore Oil Corp. (CNOOC) is preparing to open up its liquified natural gas (LNG) import terminals to third-party access.

CNOOC said on Wednesday that this would be a first in the country and that it comes after two trial runs in late 2018.

According to the company, each third-party user must take in a minimum of four cargoes (260,000 mt) per year over a ten-year period, a statement by the Shanghai Petroleum and Gas Exchange said.

The requirements could be increased, in multiples of four cargoes, subject to bilateral discussions, a source told Platts.

This initiative came in the middle of several gas market reforms following the Chinese government’s push to set up a national pipeline company.

As for allocation, half of the volumes will come from CNOOC’s long-term contract portfolio, while the other half gives the user the flexibility of direct procurement in the international market.

A source with knowledge of the matter told Platts that greater access could be allowed in the future with TPA potentially being granted to more than one company.

Another source told the energy and commodities information provider that while the initiative opened the way to allow more independent buyers to enter the international market, there was a concern about having to lock in cargoes at term prices for the next ten years.

 

LNG World News Staff

Share this article

Follow LNG World News

Posted on March 13, 2019 with tags , .

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

The 6th CWC China LNG & Gas International Exhibition & Summit

Following on from LNG 2019 and five successful editions in Beijing, the established China LNG & Gas International Exhibition & Summit…

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >

American LNG Forum 2020

The American LNG Forum is your gateway to learning about the US LNG export industry,

read more >

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >