Industries > Energy

LNG terminals open to third parties for the first time

Xinhua Financein CFBOND
2018-09-23 20:21

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China has started to open some of its State-owned liquefied natural gas terminals to third parties for unloading, with the volume of the first transaction on Sept 20 reaching 100 million cubic meters, xinhua08.com reported.

The platform provider of this unloading transaction, or so-called window trading, is the gas power company of CNOOC, while the transaction party is a joint effort of two companies, China ZhenHua Oil Co Ltd and Longkou Senton Energy Co Ltd, the report said.

The shipment is estimated to arrive at CNOOC's LNG terminal in southern Guangdong province in the second half of October, within a delivery window period of 45 days. Delivery locations also cover LNG terminals in southern Guangdong province, Fujian province and Zhejiang province, as well as Shenzhen, Zhuhai and Tianjin cities.

The trial transaction, as a major breakthrough for LNG terminals opening to third-parties, is beneficial to the implementation of the country's fuel and gas reform policy, as well as the construction of a perfect production-supply-store-sales system for LNG, the report said.

According to Fu Shaohua, deputy general manger of the Shanghai Patrol and Gas Trade Center, CNOOC's operation system and team could provide more convenience to customers and greatly reduce their cost. These transaction services are very attractive to domestic users, with almost 30 enterprises inquiring about the LNG window trading transaction service after the trial announcement, according to Fu.

According to an executive of CNOOC, services include LNG resource collection, customs clearance and coordination of terminals and supplement infrastructures. With these instructions, downstream users could complete the whole transaction independently in the future.

The LNG window trading transaction is accelerating the marketization of domestic natural gas, and enables more enterprises to engage in upstream natural gas supply, said Liu Guangbin, a natural gas analyst at intelligence provider Sublime China Information.

"With more window trading transactions in the future, China's natural gas supply will be more guaranteed, with more imports and exports of natural gas," Liu said.
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