MOSCOW (MRC) -- China Petroleum and Chemical Corp (Sinopec) has taken delivery of the first LNG cargo at its new terminal at Beihai City in Guangxi Zhuang, with the arrival yesterday of the LNG carrier Methane Spirit, delivering a cargo from Australia-Pacific LNG (APLNG), said Lngworldshipping.
Methane Spirit delivered a 160,000m? cargo to the 3 million tonne a year (mta) terminal that will supply cleaner-burning LNG to households in Guangdong and Guangxi. The project has run a year past its original launch date.
Beihai LNG is the second of five LNG-import terminals that Sinopec will build across China. Its first LNG terminal opened at Qingdao two years ago and others are planned in Tianjin, Jiangsu and Zhejiang.
Sinopec, which will source most of its LNG from Australia, is widely tipped to trade surplus volumes on the spot market. It has sought to renegotiate its supplier contracts with APLNG, seeking more keenly priced terms.
The Chinese giant is in a strong position to negotiate, as a stakeholder in the project and having committed to buy 7.6 mta from the project – nearly 90 per cent of the project’s total output – although Platts reports that this commitment is on take-or-pay terms.
Last year, China imported less gas than in the previous year for the first time, posting a 1.1 per cent drop to 19.5 mta, reflecting the slowdown in the country’s economy and the shift from energy-intensive to more service-oriented industries.
As MRC informed earlier, Russian petrochemical company Sibur is in talks with shareholder Sinopec about investing in a planned gas chemical plant in Russia's Far East. Sibur plans to buy gas from fields which Russia's Gazprom will develop in Eastern Siberia.
Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.