Report: Coronavirus prompts CNOOC to declare force majeure on LNG deals

Illustration purposes only (Image courtesy of CNOOC)

China National Offshore Oil Corporation (CNOOC) has reportedly declared a force majeure on LNG contracts due to disruptions caused by the coronavirus outbreak. 

Sources close to the matter told Platts that the deliveries have been impacted by the outbreak with the company not being able to receive cargoes.

The state-owned company has a number of supply deals in place for a total of over 20 million tons per year of LNG. Sources told Platts that the volumes from Shell have been impacted.

An end-user noted that despite low prices the company is not able to receive any cargoes.

CNOOC’s action follows the government’s decision to issue force majeure certificates to companies unable to fulfill contractual obligations. It is expected that other companies may follow in the same footsteps, however, this may only happen at specific terminals, and would depend on contracts and circumstances.

The force majeure notices have varying duration depending on the type of deliveries, whether these are spot-LNG cargoes or cargoes delivered under long-term contracts.

 

LNG World News Staff

Share this article

Follow LNG World News

Posted on February 6, 2020 with tags .

Events>

<< Feb 2020 >>
MTWTFSS
27 28 29 30 31 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 1

2nd Central and Eastern European Small Scale LNG Forum

The Forum is for LNG industry leaders, who want to keep up to date with Small-Scale LNG latest trends and many other topics!

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 >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Houston / Feb 2020

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

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – London / Mar 2020

This three-day training program provides a unique opportunity to learn and apply the practical skills…

read more >