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China's Guangdong May Get Spot LNG Cargo From Egypt
China's Guangdong Dapeng LNG Co. may receive a spot cargo of the cleaner-burning fuel from Egypt, the nation's biggest supplier of LNG, for immediate delivery this year.
Methane Alison Victoria, a 145,000 cubic-meter tanker, may reach the LNG terminal in the southern manufacturing hub of Guangdong on July 9 with a cargo from the BG Group Plc-led Idku project in Egypt, the ship-tracking data showed.
China, the world's second-largest energy consumer, bought four cargoes from the Atlantic Ocean basin in April and May to meet increased demand for the fuel on its southeastern coast, according to customs data. Guangdong Dapeng, a venture between China National Offshore Oil Corp. and BP Plc, operates one of the nation's two LNG receiving terminals.
The country paid an average $13.65 per million British thermal units for two Egyptian cargoes this year, according to calculations from customs figures. That compares with the $3.15 per million Btu China pays for Australian LNG supplied under a 25-year contract.
"For early July cargoes, Spain is paying $13.50 per thousand cubic feet (mcf) (or $13.1 per million Btu)," said Stacy Nieuwoudt, an analyst at investment bank Tudor, Pickering, Holt & Co., in an e-mail. "Japan is paying $14-16/mcf. Korea is paying $12-13/mcf."
China National's second terminal in the nearby province of Fujian received its first spot cargo from Egypt in April, the Beijing-based company said.
A spot LNG cargo typically weighs between 55,000 and 60,000 metric tons. LNG is natural gas chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 258 degrees Fahrenheit) for transportation by ships. |
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