China’s prime gas importer PetroChina has declared force majeure on natural gas imports, along with liquefied natural gas (LNG) deliveries and on gas imported through pipelines, following the coronavirus pandemic, four business sources said.
The firm issued the force majeure notice to suppliers of piped gas and also to at least one LNG supplier, although details of the force majeure notice couldn’t instantly be confirmed.
PetroChina didn’t immediately respond to requests for comment.
PetroChina realizes 40% of its total gas requirements by imports, and around 70% of imports are through pipeline gas from Central Asia, Myanmar, and Russia, while the rest are via LNG, one of the sources stated.
It was not immediately clear what quantities PetroChina had declared force majeure on or the time interval the notice covers.
However, one major LNG supplier to the Chinese firm said that PetroChina had requested some loads be deferred to the third quarter instead.
For piped gas, PetroChina shall be likely to ask for a cut in daily nominations, the first source stated.
In February, the nation’s top LNG importer China National Offshore Oil Corp (CNOOC) suspended agreements with at least three suppliers, which drove spot LNG prices to a record low.