According to Reuters, Beijing Gas Group has become the latest Chinese LNG importer. This is since the Chinese government reformed its traditionally state-based approach towards the oil and gas sector in order to secure LNG supplies and to encourage competition. Prior to this deal, other companies such as ENN Group and the LNG investor, Guanghi Energy Co. Ltd, have already imported approximately six cargoes this year.
Reuters said that Beijing Gas’ parent company, Beijing Enterprises Holding Ltd signed a cooperation agreement with ENGIE in July, ordering 150 000 m3 of LNG from ENGIE. The shipment is expected to arrive in late November 2015 at port Caofeidian, which was built by PetroChina. The price of cargo has been estimated to be at US$7 million Btu to US$8 million Btu. Reuters claim that the deal has the potential to grow into a long-term supply deal.
Beijing Gas is the main LNG distributor in Beijing, and aims to capitalise on the predicted surge in LNG demand come winter. With a population of 21 million, the capital is one the largest LNG consumers in the world, needing 10.5 billion m3/yr for homes, hotels, transport and power plants.
Edited from various sources by David Rowlands
Read the article online at: https://www.lngindustry.com/lng-shipping/24092015/beijing-gas-becomes-the-latest-lng-importer-to-benefit-from-chinese-reforms-1358/