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China's Guangdong may double spot LNG imports

China's Guangdong may double spot LNG imports

Bangkok: China's only LNG facility, Guangdong Dapeng LNG Company, may double purchases of individual liquefied natural gas this year, writes Bloomberg. The terminal, a venture between China National Offshore Oil Corp. and BP Plc, bought seven individual cargoes for immediate delivery last year, revealed Thomas King, president of Guangdong Dapeng LNG, adding that the company is in talks to buy additional LNG on multiyear terms as it increases import terminal capacity to 9m metric tons a year by mid-2009.

''We will roughly double imports of spot cargoes this year as our offtake profile will change,'' King said at the Gastech conference in Bangkok. ''We are connecting four to five power sector customers this year through pipelines... (and) are working with local and state government officials to develop a long-term pricing policy for the market '' He declined to name potential suppliers of spot and term cargoes.

China, which imports LNG under a multiyear contract with Australia, has halted spot purchases since November because of rising prices and is unlikely to make any new purchases this month.

The venture is to receive its first LNG carrier from a Chinese shipyard in March and a second in June, King said adding that a third tanker will be delivered in October 2009.  The terminal, which supplies power producers and residents in southern China's Guangdong province, has received 66 cargoes to date.  [13/03/08