Coronavirus pushes wobbly LNG market to the edge

  • 📰 Breakingviews
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

CNOOC, China’s leading LNG importer, claims the coronavirus has made fulfilling its contracts impossible. This might not pass legal muster – but the desperate measure shows just how weak Chinese demand might be, writes Three_Guineas

China National Offshore Oil Corporation has declared force majeure with at least three suppliers of liquefied natural gas because of the coronavirus, Reuters reported on Feb. 6. This legal clause enables a company to suspend its obligation to fulfil a contract because of unforeseen events, like strikes, natural disasters or wars. The notice would cover the energy giant’s LNG purchases for February and March, according to Reuters.

Reuters quoted industry sources who said CNOOC’s main suppliers are Royal Dutch Shell, Total, Woodside Petroleum, and Qatargas. A Total executive said the company had rejected a force majeure notice from a Chinese LNG buyer on Feb. 6. It did not disclose the name of the buyer. Platts Japan Korea Marker is the LNG benchmark price used for spot physical shipments in Asia. It was around $3.15 per million British Thermal units on Feb. 5.

The death toll from a coronavirus outbreak in mainland China had risen to 908 as of the end of Feb. 9, the National Health Commission said on Feb. 10.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 470. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coronavirus is the biggest market threat right now, Wall Street bull Ed Yardeni saysCoronavirus fallout could spark the next serious correction, market bull Ed Yardeni warns TradingNation TradingNation Could, except the market is ignoring the risks. TradingNation Bullshit... China has the virus and not even their stock market had a mayor correction TradingNation Bad!!! Praying for Chinese kids!!! Sweatshops!!! Pollution!!! Coroneusvirus!!!
Source: CNBC - 🏆 12. / 72 Read more »