• 3 minutes Marine based energy generation
  • 5 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Which producers will shut in first?
  • 8 mins A small trial finds that hydroxychloroquine is not effective for treating coronavirus
  • 2 hours Saudis to cut 4mm bbls. What a joke.
  • 1 min The GREAT OPEC+ Agreement
  • 2 hours Saudi Arabia Is Buying Up European Oil Majors
  • 3 hours Occidental hypocrisy
  • 55 mins Chinese Communist Party
  • 58 mins Trump will be holding back funds that were going to W.H.O. Good move
  • 37 mins Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 3 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 6 hours Sharp real pure true hard working roughneck needing work..
  • 7 hours Death Match: Climate Change vs. Coronavirus
  • 7 hours Get First Access To The Oilprice App!
Oil Industry Joins The Fight Against Coronavirus

Oil Industry Joins The Fight Against Coronavirus

The coronavirus has forced businesses…

Coronavirus Forces Qatar To Reroute Oil And Gas

Tanker

One of the biggest liquefied natural gas (LNG) exporters, Qatar, is working with importers in China to reschedule or re-route some oil and gas cargoes to the world’s second-largest LNG importer amid the coronavirus outbreak, Qatar said late on Wednesday.

“All concerned Qatari energy companies are already working closely with their Chinese partners to assist in identifying and assessing potential support areas, and ... are actively engaged in accommodating certain rescheduling or re-routing requests for deliveries of Qatari energy products,” the energy minister of Qatar, Saad al-Kaabi, said in a statement, as carried by Reuters.

Al-Kaabi is also chief executive of the state-held firm Qatar Petroleum, which exports the tiny Gulf country’s huge gas resources.

Last week, China National Offshore Oil Corporation (CNOOC), the country’s largest LNG importer, was said to have declared force majeure on deliveries of LNG cargoes and will not be honoring some of the deliveries because of the deadly coronavirus outbreak.

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.

Related: Are Oil Markets Overreacting To The Coronavirus?

Last week, spot LNG prices in Asia plunged to a new all-time low of below $3 per million British thermal units (MMBtu), down by $0.85 from a week earlier, as some Chinese importers declared force majeure on spot purchases, industry sources told Reuters last Friday.

Meanwhile, the coronavirus outbreak has prompted analysts to revise down their estimates for Chinese gas demand growth this year, warning of a knock-on effect on global LNG markets. The virus outbreak is additionally depressing China’s already slowing gas demand growth.

The lower LNG imports in China could put the natural gas markets in Europe and Asia under severe stress, Fitch Ratings said on Tuesday.

“This could significantly delay the supply-demand rebalancing expected in 2020,” the rating agency added.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage




Leave a comment

Leave a comment

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