China’s Zhenhua buys 1st LNG cargo from Chevron

China’s Zhenhua Oil, a unit of Chinese defense conglomerate Norinco, has purchased its first liquefied natural gas (LNG) cargo from energy giant Chevron.

The cargo, discharged at CNOOC’s Yuedong LNG terminal in Shenzhen, was sourced from the Australian Gorgon project operated by Chevron, according to a report by Reuters on Thursday.

The 100-million-cubic-metre cargo was purchased at about $0.30 per million British thermal unit discount to Japan Korea Marker (JKM) quotes on a delivered basis, the report said.

Cnooc said in a statement earlier this week that the cargo in question was delivered to the Yuedong facility on October 24 onboard the 155,000-cbm LNG carrier GasLog Singapore.

To remind, CNOOC sold access to its Yuedong LNG terminal to Zhenhua Oil and Longku Shengtong Energy in an auction on the Shanghai Petroleum and Gas Exchange in September.

CNOOC’s move to open up its terminals for third-party access is an important development for the Chinese LNG market.

The state-owned Zhenhua Oil previously said it is looking to secure supply in order to cater for the rising Chinese demand. It is also planning to expand its business into LNG trading.

 

LNG World News Staff

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