Posted on 01/20/2022 5:11:43 AM PST by texas booster
A unit of China’s Sinopec Group will hold a LNG auction on the Shanghai Petroleum and Gas Exchange (SHPGX) on Nov. 14, the exchange said on Friday, without revealing the volume on offer.
Potential buyers are invited to submit bids to Sinopec’s Guangxi gas sales subsidiary from 0900–1130 Beijing time (0100–0330 GMT) and 1330–1500 (0530–0700 GMT) on that day, the SHPGX said in a statement on its website.
The auction comes on the eve of China’s peak winter heating season, which gets under way in mid-November, and amid warnings of severe gas shortages in the coming months.
This winter, millions of homes across the colder northern regions will be heated by gas instead of coal for the first time, as part of Beijing’s efforts to boost clean fuel use.
*************** (from another source ... to help make the dates above clear)
The trading arm of Sinopec issued a sales tender offering up to 45 cargoes for delivery between February and October to ports in North Asia, according to traders with knowledge of the matter. This is the first time the oil major -- traditionally a buyer -- has issued such a large sales tender, the traders added. ...
To be sure, it isn’t clear how many cargoes China Petroleum & Chemical Corp., as Sinopec is formally known, actually plans to sell via its tender, and the firm may decide not to award any shipments at all.
Sinopec has a long-term purchase agreement for 2 million tons of LNG a year from Qatar that starts this year, which may be why it has excess supply to offer.
Sinopec Signs Huge Long-Term LNG Deal With U.S. Firm
By Charles Kennedy - Nov 04, 2021, 11:30 AM CDT
China’s energy giant Sinopec has signed a long-term delivery contract for liquefied natural gas with U.S. Venture Global in what has become the biggest such deal in China.
Quoting state news agency Xinhua, Channel News Asia reported that the gas, which will be delivered for 20 years initially, will come from Venture Global’s plant in Louisiana. Separately, a subsidiary of Sinopec will buy 3.8 tons of LNG from another Venture Global facility, in Calcasieu Pass. The annual supply size or value of the bigger deal was not disclosed.
The news report follows earlier ones from Reuters, which said in October that Sinopec had sealed three LNG delivery deals with Venture Global, two of which would see the Chinese state company receive 4 million tons of liquefied natural gas annually over the 20 years of the contract.
The deals, Reuters reported at the time, would double the total LNG imports into China from the United States. Yet the deals will not solve China’s immediate energy problems: the Louisiana liquefaction plant in Plaquemines has yet to receive its final investment decision, and only then will construction begin. The Calcasieu Pass facility is also at the pre-construction stage.
“China is absolutely key to global LNG market growth,” Frank Harris, head of global LNG consulting at Wood Mackenzie, said, as quoted by the Financial Times in October. “If Chinese buyers are now ready to sign long-term US deals again, it’s hugely significant for US LNG players in terms of supporting development of new capacity.”
Asia as a whole has become an even bigger market for U.S. LNG, leaving Europe behind as Asian buyers were willing to pay more for deliveries amid the energy crunch.
Going forward, a rebalancing of the gas market could once again make U.S. gas popular with European buyers for diversification reasons, if nothing else. Yet, with Asia’s insatiable appetite for energy and its willingness to pay a premium for U.S. LNG because of the lack of major pipeline supplies, it is likely to remain as the ultimate market for U.S. LNG.
I pulled together info from several articles to bring some clarity to the first article.
Sinopec has been purchasing multiple shiploads of LNG from everywhere and anywhere.
The Middle East, the US and probably Iran as well.
Now they suddenly announce that they are going to auction off multiple shiploads in February, to be delivered over the summer and Fall.
Is this a case of good old fashioned capitalism, where they corner a market, drive the prices high and then dump the commodity? Or an oversupply issue, where they bought all they could and now need to manage inventories?
What about all of the freezing Citizens within China? No delivery system to get the natural gas to the homes and apartments?
So you help us decide if this is simply corruption within China by the supreme executives, or if they have a supply issue and cannot deliver all that they have purchased?
They definitely need more. They’re doing new work here and already have a lot of production. They pay like crap, but it’s Chinese, so you’d expect that. They need to be run out on a rail and we need to stop letting foreign communist countries have any access to our resources.
Prices will be linked either to Europe’s Title Transfer Facility pricing or North Asian benchmark Japan Korean Marker.
A little more info.
I presume that you mean in the Calcasieu Pass or Port Arthur area?
Until we can ship directly to Boston, a lot of our excess nat gas needs to go overseas.
Tuesday's data showed imports of LNG at 7.63 MM tons in December, versus 6.9 MM tons in November but up just 1.6% versus the year-earlier level as stubbornly high Asian spot prices hurt import appetite.
An all-time monthly record high was set in Jan 2021 at 8.49 MM tons. Imports for the whole year totaled a record 78.93 MM tons, up 18.3% from 2020, making the country the world's largest buyer of the super-chilled fuel.
Piped gas imports last month also set a record at 4.02 MM tons, up nearly 11% over a year earlier, data showed, as Russian supplies ramped up.
How much will Hunter and The Big Guy make on this auction? Asking for a friend....and the other Biden Family members who might gain from the deal.
Northern Alberta, it’s disgusting what we allow here.
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