US LNG company share values have declined as China has begun suspending purchases amid weaker demand and record low spot prices.
Following the news that China National Offshore Oil Corp. has invoked force majeure on several LNG deliveries, Rob Patterson and Myles Mantle, London Partners at law firm Haynes and Boone, have offered their insights.
According to Reuters, China National Offshore Oil Corp. has declared force majeure on several prompt LNG deliveries from at least three different suppliers.
According to Reuters, an executive at Cheniere has revealed that the company’s sole Chinese contract customer continues to take committed LNG supplies.
An executive from Japan’s Inpex Corp. is predicting oversupply in the LNG market until mid-2020, at which point they expect demand from southeast Asia and India to pick up.
According to Reuters, an LNG tanker that had been travelling to China has been diverted, most likely due to lower demand caused by the coronavirus situation.
Chinese LNG buyers are expecting demand to be severely impacted by the coronavirus epidemic that is currently gripping the country.
Asian LNG spot prices have dropped to their lowest level in more than 10 years, due to a mild winter impacting on demand.
Beijing Gas Group has been granted state approval to build its proposed Tianjin LNG receiving terminal.