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.
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