PetroChina targets India for LNG

Vol 20, PW 23 (10 Aug 17) News in Brief

Faced with excess supply, state-owned PetroChina is stepping up LNG sales to India.

PETROWATCH learns GSPC will take delivery of PetroChina's third LNG cargo this year later this month (August) after finding "acceptable" its DES offer price of $5.85/mmbtu. "PetroChina has contracted too much LNG from Qatar and Australia," we hear.

"Now these surplus cargoes are finding their way on to the market." In April 2008, Qatargas signed a 25-year SPA to sell 3m t/y LNG from 2011 and on August 18 the following year (2009) signed a 20-year SPA with ExxonMobil for 2.25m t/y LNG from Gorgon. Reliance has already picked up two PetroChina cargoes this year, the latest a 135,882 cargo on July 30, and before that on May 31.

GAIL is also whispered to be in talks with PetroChina for a 'swap' deal for some of its in-bound US cargoes. PetroChina's latest India-bound cargo sees GSPC re-enter the spot LNG market after a break of six weeks.

On July 30, GSPC issued another tender for September and October delivery with an August 4 bid deadline but later aborted the process faced with rising spot prices.

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