By BloombergNEF
China’s smaller power and gas utilities have stepped up spot purchases of liquefied natural gas as they take advantage of cheap prices, while their bigger national gas corporation counterparts struggle to consume all their contracted supply.
Guangdong Energy Group Co. and Guangzhou Gas Group Co. have purchased at least nine cargoes for delivery this year, based on Bloomberg News reports. The companies both hold 6% stake in Dapeng LNG terminal, operated by China National Offshore Oil Corp., or CNOOC.
Dapeng opened its terminal to third-party access last year offering its gas utility shareholders around 10 cargo slots and five for its power utility stakeholders. Guangdong Energy received its first cargo at Dapeng in May 2019.
Guangzhou bought April and May delivery cargoes for low to mid-$3 per million British thermal units. Guangdong bought five cargoes at a discount to the Japan-Korea marker price.
Both companies also have a 25% share each in Zhuhai LNG terminal which plans to open third-party access to shareholders this year.
Number of LNG cargo purchases, price range and suppliers
