• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes Can LNG Kill Oil?
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 3 hours CoV-19: China, WHO, myth vs fact
  • 17 hours Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 7 hours Blowout videos
  • 1 day OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 52 mins Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 13 hours Natural Gas
  • 1 day Energy from thin air?
  • 2 days Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 2 days Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 16 hours Cheap natural gas is making it very hard to go green
  • 6 hours US Shale: Technology
Alt Text

Shale Gas Drillers Are Facing A Perfect Storm

Very low prices, high output,…

Alt Text

Why China Shuns U.S. LNG Despite Trade Deal

China might not make good…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

China’s Top LNG Buyer Refuses Cargoes Amid Virus Outbreak

China National Offshore Oil Corporation (CNOOC), the country’s largest importer of liquefied natural gas (LNG), has declared force majeure on deliveries of LNG cargoes and will not be honoring some of the deliveries because of the deadly coronavirus outbreak, Bloomberg reported on Thursday, quoting a notice that the Chinese firm had sent to suppliers.

CNOOC has declared force majeure on prompt LNG supplies from at least three sellers for purchases this month and next, sources told Reuters.

A week ago, the China Council for The Promotion of International Trade (CCPIT) announced that it would issue force majeure certificates to Chinese companies that have difficulties in meeting contract obligations with overseas partners amid the coronavirus outbreak and its fallout on the Chinese industrial activity and economy.

“Some Chinese companies have suffered severe impacts on goods and logistics and may not be able to fulfil their contracts amid the coronavirus,” the CCPIT said in a statement at the end of January, as carried by Reuters.  

CNOOC’s move this week is yet another blow to the already depressed LNG market this year.

Even before Chinese importers started invoking force majeure on LNG deliveries, LNG prices had hit a decade low, due to warmer winter weather in many parts of Asia, booming new LNG supply—especially from the U.S. and Australia—and slower import growth in China.

Now the global LNG market has to contend with the ‘black swan’ event of additionally depressed demand due to the lower industrial and economic activity in China in the wake of the coronavirus outbreak.

Traders are struggling to find buyers of LNG in Asia outside China, where spot purchases of LNG and other energy products have almost stopped, traders have told Reuters.

The virus outbreak and China’s markedly decreased demand for LNG, as well as for crude oil, are leaving traders scrambling to find alternative spot buyers and is highlight China’s importance to the global energy commodity markets.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads from Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News