China National Offshore Oil Corp (CNOOC) sold access to its Yuedong LNG terminal to Zhenhua Oil and Longku Shengtong Energy in an auction on the Shanghai Petroleum and Gas Exchange.
Under the terms of the agreement, the two pay 0.265 Chinese yuan ($0.04) per cubic meter of LNG for the access to the terminal, in a deal valued at a total of 26.5 million yuan ($3.87 million), Reuters reported
It is the first time CNOOC sold capacity at its terminal as China looks to liberalize its market and secure supplies before the winter demand kicks in.
The state-owned Zhenhua Oil is looking to secure supply in order to cater for the rising Chinese demand. It is also planning to expand its business into LNG trading.
The company has already unveiled plans to 100 million cubic meters of LNG to Yuedong, and use trucks to pick up the volumes from there.
LNG World News Staff